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Freewallet.org is a Scam – MILLIONS Stolen

Another story on Reddit pops up with a story of whopping $8.5 million being stolen from freewallet. There have been many reports against Freewallet stating they’re a scam and have stolen account holder’s funds with no proper explanation/justification. There even have been instances when freewallet has claimed a fake cyber attack to hide the fact that they have stolen to funds. In this post, we will share insights on those stories of Freewallet users. Let’s begin 😉

A user on Reddit posted that Freewallet had been holding 3 of his transactions unconfirmed. They were in the amount of .05 BTC, .10 BTC, and .16 BTC for EOS, XMR, and DASH. The user had to follow Freewallet for more than a month to get the full refund. However, the company did not refund all the three transactions that he made, only 2 out of 3 were refunded.

One important thing to note here is that the user had only one BTC address. However, upon complaining about the loss, Freewallet claimed that the user had sent to two other BTC addresses from another wallet. When asked to share reports of the same, Freewallet has nothing to say.

The user even shares the BTC address, transaction details and the original hash of that transaction for the other users to verify it. If you see the hash linked here, you can see that the tree has three transactions that are shown as unspent. Furthermore, these transactions coincide with the transactions made from the user’s Freewallet account. Freewallet has refunded 0.10 BTC & 0.5 BTC but not 0.16 BTC which nearly 1100 USD at the time of writing this post.

The user was later banned from posting on Freewallet Facebook page. The fun part, the user got that remaining 0.16 BTC refunded after posting this report on Reddit.

Another incident happened on June 13th when Ether worth $8.5 Million was stolen from Freewallet to a single address, 0x11b85b4E2FadAEbE04a251377AA35B9be3C785f0

One peculiar thing happened during this event is that thousands of transactions have happened to send funds from Freewallet to a single address, as shown by Etherscan. Even when people were reporting the unauthorized access, Freewallet address continued to transfer funds from hundreds of accounts to a single address.

Though Freewallet made an official statement against this happening that, they were under attack. Furthermore, many users assumed that this was an attack on Freewallet initially. However, this wasn’t sure an external attack. If it was so, the development or maintenance team would have immediately reported publically.

But it was after people noticing that their funds are being transferred to the same address, things went crazy among users. It’s after this that Freewallet made a statement that they were under attack. Surely, it doesn’t take this long to realize that the system is under unauthorized attack.

Many users who were not looted have moved their funds either to a hardware wallet or other safer exchanges. It’s not sure if freewallet was really behind this, but all we can say is, freewallet is not a safe place to have funds. Use Hardware wallets like Ledger Nano or Trezor, it’s the safest of all.

Further references:

  1. https://bitcointalk.org/index.php?topic=1964190.0
  2. https://steemit.com/bitcoin/@bumapuma/ethereum-freewallet-is-a-scam
  3. https://www.cryptocompare.com/coins/xmr/post/p_17535/BTC