FREEWallet.org SCAM ( Don't use any of their iOS or Android APP) - page 16.

Freewallet

member

Activity: 554

Merit: 11

Quote from: adaseb on June 12, 2017, 08:21:41 PM

Found this on Reddit. No idea if this is the correct category but apparently FreeWallet.org is redirecting everyone's payments to their own personal wallet.

https://etherscan.io/address/0x11b85b4e2fadaebe04a251377aa35b9be3c785f0

So far $8 million stolen.

They also have a Bitcoin, Dash and Monero wallet. Their website seems to be professionally done so it seems many people are affected. If you use this wallet, immediately withdraw any funds.

People love catchy headlines! $8 million stolen... oh wait, it was $7 million... oh wait, but from whom? If you read the original thread on Reddit, you'll see that there's not a single person who actually lost money with Freewallet! The reason our users got worried is because they checked their wallet balances on the blockchain explorer and found out the funds aren't there. However, the address displayed in the app is a so-called "hot wallet" used for receiving transactions. We consider keeping the funds there as well as storing private keys locally a risk because if the access to your device is compromised, it would give a hacker an opportunity to steal your assets.

That is why after our user receives a transaction, the funds are moved to the cold storage. Whenever he/she needs to make a transaction, the funds are transferred from the cold storage as well. Their actual balance is displayed in the app; what people see on a blockchain explorer is most likely an intermediary transfer of funds in/out of the cold storage (and our users aren't charged with any fees for such transactions). That's exactly what it was: rebalancing between different cold storages. Not piping their funds to an outside source.

itzhaunt

newbie

Activity: 10

Merit: 0

Quote from: adaseb on June 12, 2017, 08:21:41 PM

Found this on Reddit. No idea if this is the correct category but apparently FreeWallet.org is redirecting everyone's payments to their own personal wallet.

https://etherscan.io/address/0x11b85b4e2fadaebe04a251377aa35b9be3c785f0

So far $8 million stolen.

They also have a Bitcoin, Dash and Monero wallet. Their website seems to be professionally done so it seems many people are affected. If you use this wallet, immediately withdraw any funds.

I have used FreeWallet for a little while now. I haven't had any problems with it so far. I have deposited and withdrew a couple of times. Although I only use it for ltc. Maybe they store everything in a central wallet to prevent losses? Not sure, it just doesn't seem like they would steal from everyone as they appear to be professional.

Kilverline

member

Activity: 142

Merit: 11

I payout bcn in 3 days ago. And it is sending.... Fukkkk

bitscheerful

newbie

Activity: 4

Merit: 0

i have had freewallet for a while now and i have recieved all my pay with no problems, the attempt to save us all alot of trouble and lost funds is very highly appreciated however i think you shoould maybe try it out first and make your own opinion on this one

ssnova

newbie

Activity: 49

Merit: 0

Any updates on this? Anyone who used them? I never signed up with them but they seemed to be one of the only XMR/Monero GUI wallets out there, but then I decided to do some research and came up with threads like these.

Wendigo

legendary

Activity: 2604

Merit: 1036

Is everything back to normal now? I read the Reddit discussion and here are some of the rep responses:

Quote

With this technology all incoming transactions are received via addresses unique for each user. They are gathered in pool and then go either to payout aggregator or multi-signature cold storage.

Quote

Freewallet stores funds in a multi-signature cold storage with a bank level security grade. From time to time there are rebalancing procedures between different cold storages and hot wallets. There’s no need to worry, this is an ordinary planned procedure for cryptocurrency systems. All user assets are completely safe.

Quote

Ethereum blockchain was overloaded today with Bancor ICO transactions. A significant bunch of today's transactions are still being processed now; they will arrive soon. New Ethereum transactions are coming in and out normally.

Seems like a big misunderstanding.

cafucafucafu

hero member

Activity: 812

Merit: 509

If you don't own the private keys and make sure that the code has been audited and is open source, as well as doing your own research beforehand on the company that is producing it, whether any public figures are involved/or just an anonymous team, then you don't own any coins that are stored on the wallet. You won't trust anyone on this forum with $1k, why should you trust someone just made a site and a program, and nothing else with the same thing?

This said, nobody deserves to get scammed. So i wish all the best to these people who got scammed, and hopefully they have learned a lesson.

Quote from: rkp13 on June 15, 2017, 02:54:16 AM

This is great example how cryptocurrency is making scamming people and getting away without any legal consequences. Many many new peoples are getting scammed one way or other. ICOs are also great way for scammers to collect large sum. People are throwing money in ICOs madly.

This isn't an ICO for starters. Crypto if used correctly can actually help mitigate scams(chargebacks, hacked CCs etc.) but yes, its irreversibility is something that scammers love.

Lauda

legendary

Activity: 2674

Merit: 2965

Terminated.

Quote from: rkp13 on June 15, 2017, 02:54:16 AM

This is great example how cryptocurrency is making scamming people and getting away without any legal consequences. Many many new peoples are getting scammed one way or other. ICOs are also great way for scammers to collect large sum. People are throwing money in ICOs madly.

I can only say one thing: Caveat Emptor. You should be familiar with the saying, "A fool and his money are soon parted". I have absolutely no idea why anyone would use this ridiculously named wallet to begin with. Choosing a wallet is very simple. Need a desktop wallet? 1) Full wallet - Bitcoin Core. 2). SPV - Electrum. Need a mobile wallet? Mycelium.

In other words, people should blame themselves. Was this even open source at any point in time?

rkp13

full member

Activity: 172

Merit: 100

This is great example how cryptocurrency is making scamming people and getting away without any legal consequences. Many many new peoples are getting scammed one way or other. ICOs are also great way for scammers to collect large sum. People are throwing money in ICOs madly.

magneto

hero member

Activity: 1666

Merit: 753

Quote from: adaseb on June 12, 2017, 08:21:41 PM

Found this on Reddit. No idea if this is the correct category but apparently FreeWallet.org is redirecting everyone's payments to their own personal wallet.

https://etherscan.io/address/0x11b85b4e2fadaebe04a251377aa35b9be3c785f0

So far $8 million stolen.

They also have a Bitcoin, Dash and Monero wallet. Their website seems to be professionally done so it seems many people are affected. If you use this wallet, immediately withdraw any funds.

$8 million? That's no sum to joke about... That will buy the scammer some nice mansions with others money...

They have an ethereum wallet address, and as you said they have other altcoins as well. Is there any sort of stats on the coins which balances can be publicly inspected regarding how much coin have been stolen(I know that coins like XMR cannot be inspected)?

Honestly though, i don't get all the people using this wallet. Not trying to rub salt into the wounds, but when there are much more secure options such as downloading the actual ethereum wallet from the official site, or using myetherwallet which is a client side wallet generator, why would you entrust your coins to a third party?

And ps, i wouldn't be surprised if they claimed to be hacked at all.

Kyraishi

hero member

Activity: 952

Merit: 513

Quote from: adaseb on June 12, 2017, 08:21:41 PM

Found this on Reddit. No idea if this is the correct category but apparently FreeWallet.org is redirecting everyone's payments to their own personal wallet.

https://etherscan.io/address/0x11b85b4e2fadaebe04a251377aa35b9be3c785f0

So far $8 million stolen.

They also have a Bitcoin, Dash and Monero wallet. Their website seems to be professionally done so it seems many people are affected. If you use this wallet, immediately withdraw any funds.

Damn. This is brutal, especially when the Ethereum price is skyrocketing. People must be so happy and over the top when they see in the coinmarketcap website that Ethereum is skyrocketing and glad that they bought some - only to be hammered when they see that their coins are gone due to them storing them on a service that seemed to be all legitimate and well in the first place.

Linking to the reddit thread you're referring to so that everyone else can have a better look into the situation: https://www.reddit.com/r/CryptoCurrency/comments/6gtrmd/freewalletorg_scam_millions_stolen/

Is there any proof that free wallet is affiliated with Changelly? If yes people should avoid using them too.

adaseb

legendary

Activity: 3738

Merit: 1708

CoinPoker.com

Found this on Reddit. No idea if this is the correct category but apparently FreeWallet.org is redirecting everyone's payments to their own personal wallet.

https://etherscan.io/address/0x11b85b4e2fadaebe04a251377aa35b9be3c785f0

So far $8 million stolen.

They also have a Bitcoin, Dash and Monero wallet. Their website seems to be professionally done so it seems many people are affected. If you use this wallet, immediately withdraw any funds.

Topic: FREEWallet.org SCAM ( Don't use any of their iOS or Android APP) - page 16. (Read 23893 times)