Cryptocurrency and Forex Platform Suspends Withdrawals Due to High Market Volatility

A cryptocurrency and forex platform suspended withdrawals last Sunday (23), publicly claiming that the high volatility of both markets in which it operates is the cause of the restriction.

The case arises with FreewayFi, which presented itself as a platform that allowed profits of 43% per year with investments in cryptocurrencies or fiat currencies.

So, after raising numerous funds from investors, the leaders started participating in public events to showcase the company.

Cryptocurrency Platform Suspends Withdrawals After Being Accused of Pyramid Scheme

The problems still started on Saturday (22) when the profile of FatManTerra denounced Freeway’s possible pyramid scheme, claiming the company is a financial pyramid scheme.

This profile became known after denouncing the plan of Terra (LUNA) and Do Kwon, its leader. Last week, he also denounced former player Ronaldinho Gaucho promoting a fraudulent cryptocurrency linked to the 2022 World Cup in Qatar.

But in the Freeway case, he said he was investigating the company when he noticed cash withdrawals from the project’s wallets, prompting him to report the matter.

“If anyone has money on the Freeway cryptocurrency earnings platform, I recommend withdrawing immediately. I believe they operate a Ponzi scheme. In my opinion, the Freeway is likely to collapse in the coming months and all savers will lose everything.

Despite his belief that the company would collapse within months, it didn’t even take 24 hours for the looting to stop.

In a public note, the profile of the potential pyramid scheme, which presented itself as a cryptocurrency and forex exchange, said the flaw for withdrawing withdrawals was the high volatility of the markets in which it operates.

“As you all know, there has been unprecedented volatility in the forex and cryptocurrency markets in recent times.”

Possible scam may have raised $150 million

During FatMan’s investigation, he tracked down several company leaders and urged Freeway customers to watch out for who these people are in order to claim their rights.

Still, after the looting was frozen, the profile that filed the complaint said several of these leaders began removing their social networks in order to decouple their image from the plan.

In terms of value, it’s possible that the Freeway program raised $150 million from the victims, showing that the pledge of 43% per year convinced many investors.

Following the allegations, the company, identified as a pyramid scheme, tried to defend itself in communications with customers, declaring that the freeze is not a “carpet pull”.

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Source: Live Coins