Freeway Token Plunges As ‘High Yield’ Crypto Project Stops Withdrawals

Crypto yield scheme Freeway has halted withdrawals on its platform, causing its token (FWT) to drop more than 70% in value.

The company, formerly known as AuBit, allows users to purchase “Superchargers,” which simulate a variety of cryptocurrencies. According to Freeway, holders then start receiving daily rewards, with total possible annual rewards of up to 43%.

In a statement posted on its website and on Twitter on Sunday, Freeway said it had decided to diversify its assets to ensure the long-term sustainability and profitability of the system. The move was designed in response to volatility in the currency and cryptocurrency markets.

“This will allow Freeway to maintain the highest level of Supercharger simulation rewards,” the statement said.

While the process is ongoing, Freeway said it would allocate capital to its underlying portfolio, meaning it will not buy back any Superchargers, leaving users unable to cash out.

No date was given for the end of the process and Freeway said it would not comment further beyond the initial statement.

The 43% return quoted by Freeway is based on a 20% fundamental annual return. Holders could then increase the annual reward by taking part in various loyalty incentives, according to a video made by Freeway. The first involves getting users to put a 30-day notice period on any sale of their Superchargers, which will give them an extra 10% return. They can then add another 10% by holding a certain number of Freeway Tokens.

The last 3% comes from the platform’s “activity score”, which basically meant signing up for the company’s newsletter.

Freeway promised on its website that more ways to increase this score are coming soon and could be worth as much as 10%, meaning the total potential return promised to customers will reach a whopping 50%.

Freeway’s founders

Freeway was originally launched as AuBit in 2017, and was later changed to Freeway on January 3rd this year.

It was founded by Graham Doggart and Sadie Hutton, who now act as managing directors, along with Peter Neilson, who is listed as a director.

Doggart and Hutton were previously married and have a child together, but are now divorced, according to a Medium post published by Doggart in July this year.

“We are better as business partners, co-parents and friends, so that’s why it is,” he wrote. “Freeway has grown 100-fold with us at the helm, and [we are] no longer in a relationship for the last couple of years.”

Hutton and Doggart’s previous businesses together include a fish and seafood wholesaler by name Glacial Briteand a company called GSCD Limited which declared bankruptcy in 2017.

Both were also involved in Dynamic Abundance, a blockchain and fintech advisory company that is no longer active.

The three founders are currently the only team members listed on Freeway’s website, however an archived version of the website shows five more people.

One of these, CEO Mark Kearns, is also listed as a director of Aubit’s British company profile.

Aubit Holdings UK filed its 2021 accounts late last month, reporting a total loss of £1,366 ($1,545) for the period.

There is also an Estonian listing for the company under the name Freeway Exchangewhere documents show just €63 ($61) profit for 2021 and record current assets as €12,250 ($12,000).

The American branch of the business is registered at an address in Sheridan, Wyoming, which serves as the official address for dozens of companies that have no physical location.

The building on North Gould Street has been the subject of both local and international reportingdue to the number of scams using the address.