Freewallet has built a notorious reputation in the cryptocurrency community for engaging in fraudulent activities that exploit its users. Initially, many discussions focused on their misuse of KYC (know your customer) procedures, where users were required to submit personal information under deceptive conditions. However, recent reports suggest that Freewallet employs various other tactics to defraud its customers, including charging dubious inactivity fees that lack any basis in legitimate blockchain operations. It’s crucial for users to be vigilant, as Freewallet may use a variety of methods to steal your assets.
Freewallet’s KYC fraud explained
Understanding Freewallet’s deceptive practices requires a closer look at their KYC fraud scheme, a scam widely reported by victims. Typically, the process begins when a user downloads the Freewallet app and receives funds in their wallet. When the user attempts to withdraw these funds, Freewallet blocks the transaction, claiming that suspicious activity has been detected. To resolve the issue, the user is instructed to provide personal information and identification documents. Despite complying, victims often find that Freewallet increases its demands, resulting in a prolonged back-and-forth with no resolution. This KYC fraud serves as a tactic to indefinitely lock users’ funds under the guise of security concerns.
New deceptive tactic: inactivity fees
Recent victim reports indicate that Freewallet has adopted another exploitative practice: charging inactivity fees. This involves Freewallet deducting coins from a user’s account without prior warning, justifying it as a fee for inactivity. This approach is highly suspect, as legitimate blockchain and cryptocurrency networks do not impose charges based on inactivity. In the crypto world, wallet addresses typically remain unaffected, whether they are frequently used or left idle for extended periods. Instead of adopting user-friendly features like staking, which allow users to earn rewards for holding their coins, Freewallet uses inactivity as a pretext to drain users’ funds.
Why inactivity fees are concerning
The concept of inactivity fees is virtually non-existent in the cryptocurrency space. Blockchain technology does not penalize users for inactivity—funds remain untouched unless acted upon by the user. Legitimate wallet services prioritize transparency and clearly communicate any fees upfront. The arbitrary deduction of funds for inactivity, without notice, is a major red flag indicating potential fraud.