As if the hyper compliance culture can’t get any creepier. Freewallet has frozen a user’s funds without actually asking for KYC information.
Just 2 days ago, we received a valid report from a Freewallet account holder that his funds were suddenly seized by the multi-currency online crypto wallet. According to the user’s statement, he was simply trying to send 2 BTC to another account when this questionable and alarming event happened.
To fix the problem, the user immediately contacted the Freewallet Support Team but their response was hilariously suspicious.
First, they asserted that Freewallet’s internal automatic security algorithm was triggered because the amount of the transaction was quite significant. Again, the user only needed to send 2 BTC. When did such amount start to become a cause for concern? How can a withdrawal of 2 BTC be even considered as suspicious activity?
Second, the support team also required the user to pass a 4-step verification procedure that includes screenshots of all incoming transactions such as proofs of payment coming from other wallets where the coins came from. They even stressed the need to include all hashes for the said transactions.
Third, their security department demanded that information about the origin of funds shall be forwarded to them. The required information must include screenshots of the conversion of fiat money into cryptocurrency, a list of crypto exchange transactions, and proofs of payment from mining pools. Why does a crypto wallet even need to know the source of funds of their users?
Fourth and most disturbing is their attempt to infringe on the privacy of their user by asking for the links of his profile on any social media platform, but never really asking for the Users ID. Isn’t blockchain technology supposed to protect the right of everyone to private financial transactions?
Despite constant communication with Freewallet’s support team, the user’s fund still remains frozen up to this moment. How can a crypto wallet seize a user’s fund with no acceptable reason at all?
If this continues, then anyone can just be a victim of random restrictions, strange requirements, and cryptic rules. How do we even know when our coins remain safe in these online wallets? In the meantime and maybe forever, do not use Freewallet. The China-based company has no accountability.