- Freeway, a crypto staking platform halted all withdrawals and wiped out names of team members from their website.
- Fatman Terra, an analyst who uncovered the Terra LUNA scam shared details of the $100 million rug pull on the staking platform.
- The analyst had instructed users to withdraw their funds from the platform and suggested that Freeway is a ponzi scheme.
Terra Luna exploit expert Fatman Terra has accused crypto staking platform Freeway of a rug pull, in which management pulls user capital and abandons the project, essentially pulling the rug from under traders. The platform has halted withdrawals and deleted team member details from their website, citing market volatility and the need to diversify their holdings.
Also read: FTX user hit by million dollar loss overnight, lost hundreds of Ethereum tokens, Bitcoin
Crypto staking platform accused of $100 million rug pull
Crypto staking platform Freeway offered users up to 43% annual rewards previously. Now the project is making headlines for what looks like a rug pull to the analyst behind the Terra Luna expose. Fatman Terra, a crypto Twitter influencer and the brains behind the investigative journalism into the implosion of sister tokens LUNC (previously known as LUNA) and UST (Terra’s algorithmic stablecoin).
The Terra-UST implosion wiped out $41 billion from crypto market capitalization and Fatman Terra dropped key details on the reason behind the event on Twitter. On October 23, Freeway halted withdrawals and deposits citing market volatility. This aroused Fatman Terra’s suspicion. On October 22, the crypto influencer completed his evaluation of the platform and advised users against using the staking platform. The expert recommended that users withdraw their funds as soon as possible as the platform is likely to implode within months.
The firm notified users that it has decided to diversify its asset base and avoid future market volatility to increase the platform’s sustainability. There is, as yet, no confirmation of the of a $100 million rug pull rumour.
Fatman argues that halted withdrawals are a key indicator of the platform’s health. The deletion of team member’s info is another factor rousing suspicion in the crypto community. In his recent tweet, the expert mentions his concerns regarding the staking platform.
Two hours ago, Freeway halted all platform withdrawals. They also wiped the names of all team members from their website. It looks like it's over. Another $100m+ rug. https://t.co/CUHZRygRGM pic.twitter.com/BJE4QMtkPy
— FatMan (@FatManTerra) October 23, 2022
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.