Freeway crypto project stopped client operations

Freeway crypto project stopped client operations

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Crypto platform Freeway announced that it has halted transactions and withdrawals for customers, citing "unprecedented volatility" in the cryptocurrency markets. Most of the project's team has been removed from its official website, with the developers suspected of scamming (defrauding depositors) over $100 million, according to a blockchain analyst known in the cryptocurrency community as FatMan.

The day before, FatMan, who previously investigated the Terra crash, warned his subscribers that the Freeway project could be a pyramid scheme that would collapse in the coming months. Also, he recommended withdrawing funds from that platform. At the same time, Fatman published information about suspicious transactions and actions of Freeway's team and photos of employees who were removed from the site.

Freeway's crypto platform offered returns of up to 43% per annum. Users could deposit fiat currencies and cryptocurrency into special brokerage accounts for profits. The team provided no other comment on the suspension, but the announcement says it plans to diversify its asset base and will announce further when the service is restored.

Since the announcement of the suspension of operations, the Freeway platform's native token (FWT) has lost more than 76% in value, according to CoinGecko. On Oct. 24, FWT dropped to $0.0015. It has a market capitalization of $10.3 million.

In July, Titanium Blockchain crypto platform founder Michael Alan Stollery pleaded guilty to a $21 million cryptocurrency fraud scheme in which the company raised funds from investors in the United States and other countries through an initial public offering (ICO) of the platform's native token.

 

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