|

Investigative crypto journalist accuses staking platform Freeway of rug pull

  • 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. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

XRP Price Forecast: XRP trades sideways as Ripple targets 10 million agentic AI transactions
Ripple (XRP) is losing momentum on Thursday, albeit gradually, trading above $1.13. The remittance token tagged a weekly high of $1.16 on Tuesday, with gains mainly attributed to developments on the United States (US) Clarity Act and recent signs that inflation is easing in the world’s largest economy.
Crypto Today: Bitcoin, Ethereum, XRP trim gains despite resilient ETF inflows
Cryptocurrency prices are trending lower on Thursday, pressured by renewed inflation concerns stemming from ongoing tensions between the United States (US) and Iran and persistently elevated Oil prices. Bitcoin (BTC) is approaching short-term support at $65,000, with upside resistance remaining firm at $67,000.
Worldcoin Price Forecast: WLD steadies as multiple bullish signals line up
Woldcoin (WLD) price trades around $0.3838 at press time on Thursday, extending a consolidative tone capped beneath the 50-day Exponential Moving Average (EMA) at $0.4141. WLD token emissions are scheduled to drop by 43% from Friday, reducing supply pressure. Retail activity in WLD derivatives remains firm, with a 40% rise in trading volume and elevated funding rates.
Dogecoin Price Forecast: DOGE nears yearly low as risk appetite fades
Dogecoin (DOGE) extends its decline on Thursday, approaching its yearly low at $0.069 as bearish sentiment continues to weigh on the meme coin. Escalating US-Iran conflict and fresh Houthi threats have dampened risk appetite, weighing on speculative assets such as DOGE. Weakening derivatives metrics and a deteriorating technical outlook suggest a deeper correction if DOGE slips below $0.069.
Bitcoin’s potential recovery in the second half hinges on these 4 catalysts
Bitcoin (BTC) has fallen over 34% in the first half of this year as the King Crypto failed to capitalize on a good semester for risk assets despite the woes from the Iran war.