Crypto platform Freeway halts withdrawals, blames “unprecedented volatility”

Centralized staking platform Freeway announced a halt to services related to its high-yield “Supercharger” product, triggering a free fall of its FWT token.

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“As all of you will be aware, there has been unprecedented volatility in Foreign Exchange and Cryptocurrency markets in recent times,” the company’s website reads. “Freeway has therefore decided to diversify its asset base to manage exposure to future market fluctuations and volatility ensuring the long-term sustainability and profitability of the Freeway Ecosystem. This will allow Freeway to maintain the highest level of Supercharger simulation rewards.”

This means that for an unspecified period of time, Freeway will not be buying back its Supercharger simulations — a financial product that offers up to 43% annual rewards. Superchargers are denominated in a crypto or fiat of choice and can be purchased from the platform upon depositing funds. These simulations can then be sold back to Freeway to get funds back.

However, since withdrawals were halted, a number of alarming red flags were reported by the platform users, indicating the possibility of a rug pull. The names of all team members disappeared from the website, and so did the attestation from auditors, meaning that users would have a hard time finding evidence for future legal claims.

Earlier this week, a crypto whistleblower FatMan advised all Freeway users to withdraw their funds from the platform, warning that the company is operating a Ponzi scheme.

“In my opinion, it's likely that Freeway will collapse within the next few months and that all depositors will lose everything,” FatMan added.

Freeway, however, attempted to calm the panic, promising to recommence Supercharger purchases, but no exact dates were given.

“We will notify you when we are ready to recommence partial Supercharger simulation purchases (buy-backs) and then again as we can recommence full Supercharger simulation purchases as well as on platform Freeway Token (FWT) Deposits and Buys,” the company said.