|

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:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).

Sberbank issues Russia's first corporate loan backed by Bitcoin

Russia's largest bank Sberbank launched the country's first Bitcoin-backed corporate loan to miner Intelion Data. The pilot deal uses cryptocurrency as collateral through Sberbank's proprietary Rutoken custody solution.

Bitcoin recovers to $87,000 as retail optimism offsets steady ETF outflows

Bitcoin (BTC) trades above $88,000 at press time on Tuesday, following a rejection at $90,000 the previous day. Institutional support remains mixed amid steady outflow from US spot BTC Exchange Traded Funds (ETFs) and Strategy Inc.’s acquisition of 1,229 BTC last week.

Traders split over whether lighter’s LIT clears $3 billion FDV after launch

Lighter’s LIT token has not yet begun open trading, but the market has already drawn a sharp line around its valuation after Tuesday's airdrop.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.