|

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 sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.

Crypto Today: Bitcoin, Ethereum, XRP extend sell-off amid negative funding rates 

Bitcoin is down 15% in February and looks poised to extend its losses toward the yearly low of $60,000. Ethereum and Ripple are following in Bitcoin's footsteps, weighed down by a weak derivatives market. 

Hyperliquid tests key support as sell-side pressure intensifies

Hyerliquid (HYPE) drops to its 50-day Exponential Moving Average (EMA) at $28.85 at the time of writing on Wednesday, extending a decline of roughly 10% so far this week. 

Stellar Price Forecast: XLM risks revisiting $0.136 as sell-off continues

Stellar is trading below $0.160 at the time of writing on Wednesday, extending its correction for the fifth consecutive day. The bearish price action is further supported by rising short bets and declining Open Interest in the derivatives market. 

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: The worst may be behind us

Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.