Freewallet.org is a fraudster who cheated me out of 15.2BTC

[fuckpay]

Hello, from a friend in chat room, I knew Freewallet.org where I could conveniently exchange cybermoney only by registering. I believed that BTC would appreciate on July 10 so I transferred 190000 USDT in total on July 9 and successfully exchanged the money into 15.2 BTC. Website: https://live.blockcypher.com/btc/address/3MYY7addBQNQn4DW8Bz2FRUNdsexLKt88D/
When I tried to transfer the 15.2 BTC out of Freewallet.org, the website reminded me of “Error in transaction fields”. I did not know why this happened so I tried for many times.

https://imgur.com/BdaWsdz

I got the following email from them,

We’d like to inform you that our security system has detected suspicious activity on your account. In case it was a hacking attempt, we had to temporarily suspend withdrawals from your account – this way your funds will be absolutely safe, and the access will be restored once the verification procedure will be finished.

There’s nothing to worry about – Freewallet will gladly guide you through this standard procedure and will restore the access to your account shortly.

To verify your identity, we’ll need some of your personal information. Please reply ‘Yes’ to this email in order to agree.

In our terms and conditions that every user accepts when setting up an account, you can find out more details about the verification procedure. Also, you can check our privacy policy here.

Rest assured – your funds will remain on your account untouched, and you can always check your balance.

Thank you for your understanding, and we are looking forward to hearing back from you!

It is ridiculous that I can provide correct Email confirmation, 2-factor authentication and PIN code but the website reminded me of” detected suspicious activity on your account. In case it was a hacking attempt, we had to temporarily suspend withdrawals from your account”. The website require me to provide my personal information. Is Freewallet.org a wallet? Why does it require me to provide my personal information like an exchange? I do not want to provide but the price fluctuation of BTC is huge. I have no time to communicate with them so I have to compromise and provide Freewallet.org with my personal information.

https://imgur.com/XvtzB6X

https://imgur.com/fwhDDjh

For fear of Freewallet.org having more reasons to refuse me, I contacted a professional translation agency to translate my personal information, and sent it to them again. They told me to wait for their approval. But I haven’t received any news up to now. I have emailed them several times to speed up my information review, but they only told me to wait. Now the price of Bitcoin has fallen, so that I have lost USD 30,000 on Freewallet.org. I hereby warn everyone that please do not use Freewallet.org. I just want to get my money back now.

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[TryNinja]

I've PM'ed his account here about this post. Let's see what he has to say.

[Freewallet]

Hello,

As per our terms and conditions, we are authorized to perform the verification procedure: https://freewallet.org/terms (please read the 5th paragraph)

However, we are making sure to have our customers' accounts verified as soon as it is technically possible.

In your case, the risk-scoring algorithm has detected suspicious activity. For security reasons, we are not able to reveal all the details of this process.

Thank you for preparing the requested documents; we'll definitely get back to you today.

[Slow death]

But I haven’t received any news up to now. I have emailed them several times to speed up my information review, but they only told me to wait.

Can you tell us how long you've been waiting for their response? and did you buy USDT using your bank card? Sorry for my ignorance, I just want to understand what option you used to buy those USDT

Hello,

As per our terms and conditions, we are authorized to perform the verification procedure: https://freewallet.org/terms (please read the 5th paragraph)

However, we are making sure to have our customers' accounts verified as soon as it is technically possible.

In your case, the risk-scoring algorithm has detected suspicious activity. For security reasons, we are not able to reveal all the details of this process.

Thank you for preparing the requested documents; we'll definitely get back to you today.

from what I saw, you are anonymous:

https://freewallet.org/about

and I do not see any license issued by any government that gives you authority to request documents from your clients, what authority do you need to report your wallet activities? because I'm not seeing another reason for you hold OP funds, and do not talk about your TOS, that this is already tiring

[Freewallet]

from what I saw, you are anonymous:

https://freewallet.org/about

and I do not see any license issued by any government that gives you authority to request documents from your clients, what authority do you need to report your wallet activities? because I'm not seeing another reason for you hold OP funds, and do not talk about your TOS, that this is already tiring

Our guidelines are compliant with international AML regulations and standards.
That's the main reason why this procedure is in place.

[fuckpay]

from what I saw, you are anonymous:

https://freewallet.org/about

and I do not see any license issued by any government that gives you authority to request documents from your clients, what authority do you need to report your wallet activities? because I'm not seeing another reason for you hold OP funds, and do not talk about your TOS, that this is already tiring

Our guidelines are compliant with international AML regulations and standards.
That's the main reason why this procedure is in place.

I received your reply and provided my personal information again according to your request. Please handle it as soon as possible! You will only request information from customers endless it?

[Patatas]

I received your reply and provided my personal information again according to your request. Please handle it as soon as possible! You will only request information from customers endless it?

Create a Flag against the service and I'll support it. It absolutely disgusts me to see what has crypto come upto. You need document verifications to have access to your wallet? From a company whose team is anonymous? Op, you're an idiot to be using such scam service in the first place!

I've left a negative rating on their account as I don't trust a wallet service that asks for KYC.

,
In your case, the risk-scoring algorithm has detected suspicious activity. For security reasons, w are not able to reveal all the details of this process.

How does the risk-scoring algorithm work? Mind sharing the pseudo code?

[marlboroza]

It absolutely disgusts me to see what has crypto come upto.

With all these regulations sooner or later every service will ask for personal information.

You need document verifications to have access to your wallet? From a company whose team is anonymous? Op, you're an idiot to be using such scam service in the first place!

I can't say it wasn't expected:

Buy cryptocurrency with a credit card on Freewallet
[...]
    You may be asked to provide some information about yourself — that is our payment provider’s requirement.

How to buy crypto in the wallet
[...]
You may be asked to provide some information about yourself — that is our payment provider’s requirement.

Documents
To get crypto, you have to prepare some personal information. We are required to take these precautions to comply with “Know Your Customer” (KYC) and “Anti-Money Laundering” (AML) regulations. We will use your data for verification purposes only.

https://freewallet.org/buy

--------------------

In your case, the risk-scoring algorithm has detected suspicious activity. For security reasons, we are not able to reveal all the details of this process.

Our guidelines are compliant with international AML regulations and standards.
That's the main reason why this procedure is in place.

I don't really understand this. Was it because of security issue ("suspicious activity") or AML?

[AdolfinWolf]

How does the risk-scoring algorithm work? Mind sharing the pseudo code?

Sounds like a Changelly-esque case to me, "do a big transaction and we ask for your identification out of the blue". Where really, they're hoping the customer never provides any docs.

In your case, the risk-scoring algorithm has detected suspicious activity. For security reasons, we are not able to reveal all the details of this process.

Thank you for preparing the requested documents; we'll definitely get back to you today.

Aka, we cherry picked you because you deposited a large amount of money. And really, AML? He is transferring USDT -> BTC. How could he possibly be laundering money?

This is a nice way to lose all credibility as a "custodial" wallet. If you had any.

Code:

In case of Your breach of the Terms, <...> in our sole discretion and without liability to you, with or without prior notice:

a)suspend your access to all or a portion of our Services; or
b)prevent you from completing any actions via the Wallet, including closing any open Transaction requests. 
In case the Transaction resumes, you acknowledge and agree that prevailing market rates may differ significantly from the rates available prior to such event; or
c)terminate your access to the Services, delete or deactivate your Freewallet Account and all related information and files in such account.
5.9.
In the event of termination, Freewallet will return any crypto assets stored in your Freewallet Account and not owed to Freewallet, unless Freewallet believes you have committed fraud, negligence or other misconduct.
#

The last sentence is particularly worrisome. I'm not sure if this is normal in the industry, but how can this company be both the investigator, jury, and executioner, is this even legal?

They've written their own carte blanche to dupe customers whenever they want to.

[legendster]

I just checked the freewallet app and realized they do not even give the "wallet's" private keys to the users. This should have been the first red flag. Shame that such an established named had to resort to such trickery.


@OP Create a flag which says "This user violated a casual or implied agreement with me, resulting in damages" I will support it.



I have also seen some of the past abuses that were similar to this incident. I will never trust this wallet again.

[Freewallet]

Our guidelines are compliant with international AML regulations and standards.
That's the main reason why this procedure is in place.

I don't really understand this. Was it because of security issue ("suspicious activity") or AML?
[/quote]
Reveal of suspicions activity implies we'd act within the frames of the AML regulations.

[Freewallet]

I just checked the freewallet app and realized they do not even give the "wallet's" private keys to the users. This should have been the first red flag. Shame that such an established named had to resort to such trickery.


@OP Create a flag which says "This user violated a casual or implied agreement with me, resulting in damages" I will support it.



I have also seen some of the past abuses that were similar to this incident. I will never trust this wallet again.

As a custodial service, we chose not to share private keys with individual wallet addresses. As you can see, we always provide step-by-step assistance should any claim be addressed.

[Freewallet]

The last sentence is particularly worrisome. I'm not sure if this is normal in the industry, but how can this company be both the investigator, jury, and executioner, is this even legal?

Would you mind sharing what led you to this conclusion? As per our terms and policy, we have the right to put suspicious activity on hold.
It is the common practice of financial entities nowadays.
As for the investigation, we are always available to all requests of public authorities and further cooperation.

[marlboroza]

As a custodial service, we chose not to share private keys with individual wallet addresses. As you can see, we always provide step-by-step assistance should any claim be addressed.

So the name is misleading and freewallet is not a wallet, rather some kind of financial institution?

[AdolfinWolf]

The last sentence is particularly worrisome. I'm not sure if this is normal in the industry, but how can this company be both the investigator, jury, and executioner, is this even legal?

Would you mind sharing what led you to this conclusion? As per our terms and policy, we have the right to put suspicious activity on hold.
It is the common practice of financial entities nowadays.
As for the investigation, we are always available to all requests of public authorities and further cooperation.

Well that's exactly my point.

Per your TOS you have a motive to ask as much customers as possible for KYC documents, as you state that if *you* think a customer has commited fraud, you can seize their assets.

Who are you to determine what's fraud in the first place, and not something like a trusted third party? and how can you then claim the "fraudulent money".
One can argue that that is your actual business model (Which is highly immoral imo.)

Idk. It just seems like there are no checks and balances. Another reason not to use your service.

[LFC_Bitcoin]

Looks like they have form for this type of behaviour. Similar in April 2019 - sum 120,000 USDT

https://bitcointalk.org/index.php?topic=5128260.0

Release the OP’s money Freewallet or you’ll get a shit storm of negative trust & you’ll get a flag against your account.

[Freewallet]

As a custodial service, we chose not to share private keys with individual wallet addresses. As you can see, we always provide step-by-step assistance should any claim be addressed.

So the name is misleading and freewallet is not a wallet, rather some kind of financial institution?

We are a digital wallet.

[Freewallet]

Hello, from a friend in chat room, I knew Freewallet.org where I could conveniently exchange cybermoney only by registering. I believed that BTC would appreciate on July 10 so I transferred 190000 USDT in total on July 9 and successfully exchanged the money into 15.2 BTC. Website: https://live.blockcypher.com/btc/address/3MYY7addBQNQn4DW8Bz2FRUNdsexLKt88D/
When I tried to transfer the 15.2 BTC out of Freewallet.org, the website reminded me of “Error in transaction fields”. I did not know why this happened so I tried for many times.

https://imgur.com/BdaWsdz

I got the following email from them,

We’d like to inform you that our security system has detected suspicious activity on your account. In case it was a hacking attempt, we had to temporarily suspend withdrawals from your account – this way your funds will be absolutely safe, and the access will be restored once the verification procedure will be finished.

There’s nothing to worry about – Freewallet will gladly guide you through this standard procedure and will restore the access to your account shortly.

To verify your identity, we’ll need some of your personal information. Please reply ‘Yes’ to this email in order to agree.

In our terms and conditions that every user accepts when setting up an account, you can find out more details about the verification procedure. Also, you can check our privacy policy here.

Rest assured – your funds will remain on your account untouched, and you can always check your balance.

Thank you for your understanding, and we are looking forward to hearing back from you!

It is ridiculous that I can provide correct Email confirmation, 2-factor authentication and PIN code but the website reminded me of” detected suspicious activity on your account. In case it was a hacking attempt, we had to temporarily suspend withdrawals from your account”. The website require me to provide my personal information. Is Freewallet.org a wallet? Why does it require me to provide my personal information like an exchange? I do not want to provide but the price fluctuation of BTC is huge. I have no time to communicate with them so I have to compromise and provide Freewallet.org with my personal information.





For fear of Freewallet.org having more reasons to refuse me, I contacted a professional translation agency to translate my personal information, and sent it to them again. They told me to wait for their approval. But I haven’t received any news up to now. I have emailed them several times to speed up my information review, but they only told me to wait. Now the price of Bitcoin has fallen, so that I have lost USD 30,000 on Freewallet.org. I hereby warn everyone that please do not use Freewallet.org. I just want to get my money back now.

Hi!

Thanks for providing all the requested info! The hold on outgoing operations in your account has been released after completion of the verification procedure on July 12th.

Please check your account and let us know if you have any questions.

We'd like to ask the moderator to update the title to 'Solved' - thanks!

[Freewallet]

Well that's exactly my point.

Per your TOS you have a motive to ask as much customers as possible for KYC documents, as you state that if *you* think a customer has commited fraud, you can seize their assets.

Who are you to determine what's fraud in the first place, and not something like a trusted third party? and how can you then claim the "fraudulent money".
One can argue that that is your actual business model (Which is highly immoral imo.)

Idk. It just seems like there are no checks and balances. Another reason not to use your service.

We don't claim certain action to be a fraud but our duty is to prevent the possibility of illegal activity.
Working in the legal field, we have to be very well aware of the nature of financial operations going through our wallet. It also means being able to provide viable documentation once a request from public authorities comes.

[Freewallet]

Looks like they have form for this type of behaviour. Similar in April 2019 - sum 120,000 USDT

https://bitcointalk.org/index.php?topic=5128260.0

Release the OP’s money Freewallet or you’ll get a shit storm of negative trust & you’ll get a flag against your account.

The referenced issue has been resolved: please see our post as of April 13 https://bitcointalk.org/index.php?topic=5128260.20