Freewallet KYC scam and how to deal with it

Freewallet administration is stealing crypto assets. Sometimes it happen, when users transaction suddenly disappear. But more often Freewallet scam leaders just block victims wallet. In this situation user can’t withdraw funds from Freewallet, but also can’t make an official fraud report since the administration declares just a fromal “KYC/AML procedure”.

If you find yourself in a similar situation, you need to understand the main thing. All this is a cunning way of fraud. Freewallet’s actions have nothing to do with verification. In essence, we are talking about a method of deception called KYC or AML scam.

What is AML and KYC

Although cryptocurrencies are formally not controlled by the state, the governments of most countries set requirements for exchanges, trading and payment services. One of them is the introduction of a KYC (know your client) and AML (anti-money laundering) policy:

  • Each exchange, trading platform or payment service must block assets, involved in illegal activities, like terrorism or drug traffic.
  • Services are allowed to reqire documents proving the identity, such as ID.
  • If necessary, financial companies may request from clients documents confirming their identity, residential address and legal origin of funds.

The key word here is if necessary. That is, KYC and AML checks are needed to make life more difficult for criminals and extremists. And it is right. But at the same time, the actions of financial services should not harm the interests of clients. Unfortunately, under the guise of KYC and AML, companies like Freewallet have launched a real fraudulent scheme.

Freewallet KYC and AML scam

Standard verification on any reliable financial service takes several minutes, or, in extreme cases, hours. Because the support service does not want to lose customers and does not make them wait long for documents to be verified. In the case of Freewallet, everything happens the other way around.

  • The administration does not warn about the need to confirm your identity. This happens as soon as tokens or coins arrive to the wallet.
  • Users may wait weeks for documents to be verified or messages to be answered.
  • The company rejects even documents of good quality and constantly changes requirements. As a result, the verification process can drag on for years.

The meaning of such actions is obvious. Under the guise of KYC and AML Freewallet scammers assets steal. At the same time, it is difficult to prove fraud, because formally the client himself agreed to the rules of the service at the time of downloading the wallet.

But this does not stop the Freewallet KYC/AML scam from being an asset theft scheme!

Normal KYC/AMLFreewallet scam
Takes minutes or hoursMay last for ever.
Conducted under transparent and understandable conditionsAdministration changes requirements almost every day.
Clients continue to use the company’s services (if they have not violated the law)Users lose their assets.

What should users do in case of AML or KYC fraud?

First of all, avoid companies and services with a bad reputation. You can find hundreds of complaints against Freewallet on our website alone. In addition to the violations themselves, the fact that the real owners of the project hide their names is also important (although we were able to identify the alleged leaders of the Freewallet scam).

It turned out that the owner of Freewallet org created a similar project called Cryptopay, through which money stolen from clients also passes. So avoid not only Freewallet, but also similar services.

Secondly, if you already use such wallets, withdraw your funds as soon as you can. Otherwise your acc may be frozen, without any chance to get coins back.

In addition, don’t forget to make screenshots and to save messages you send to support. It may be useful in case of future investigation.