The online cryptocurrency wallet service, Freewallet, is once again under the spotlight following allegations of fraud, adding to an increasing volume of complaints. In a recent incident, a Canadian user who meticulously followed all required verification processes found himself unexpectedly locked out of his Bitcoin assets—worth about $12,000—without a clear explanation. Although cryptocurrency wallets are designed to empower users by giving them control over their funds, Freewallet’s practices suggest otherwise, as they seem to implement questionable protocols that restrict users’ access, a strategy some have begun to label a “KYC scam.”
The trouble for this user began on June 2, 2023, when he registered with Freewallet and transferred $12,000 in Tether (USDT) from a Zixipay wallet. After a single transaction, converting his USDT to Bitcoin, his funds were suddenly frozen. Freewallet’s support team claimed they needed to investigate the source of his funds and verify his identity, a step frequently justified as a routine security measure on financial platforms. However, even after he provided all requested documentation, Freewallet offered no concrete updates. Instead, support insisted the case was under review by a “technical team,” without any clarity on when, or if, the funds would be released. This left the user effectively stranded, with no access to his $12,000 and no foreseeable resolution.
Unfortunately, this case is not isolated. Reports from users worldwide reveal a similar pattern: funds are indefinitely withheld, support remains elusive, and vague “investigations” are cited as a rationale for frozen accounts. Many allege that these tactics are designed to perpetually delay access to funds, with repeated documentation requests and an endless review process, effectively trapping users’ money.
In an industry where digital asset ownership is meant to provide users with financial autonomy, Freewallet’s actions raise significant concerns. Traditional banks operate under regulatory oversight to prevent such exploitation, but the relatively unregulated cryptocurrency space has seen platforms like Freewallet operate with little accountability. Practices that freeze funds without transparency would likely be unacceptable within conventional financial services and could violate consumer protection standards.
Users should be cautious when dealing with Freewallet, as it may actively undermine their interests. By blocking withdrawals, delaying responses, and claiming accounts are with untraceable “technical” teams, Freewallet APP has left some clients facing financial difficulties as they cannot access essential funds. As a result, the cryptocurrency community has voiced strong objections, with users on platforms such as Reddit and Trustpilot sharing similar experiences. Many have reported that after exhausting all channels with Freewallet’s support, they were ultimately forced to abandon hopes of recovering their funds.
The cryptocurrency space was established on principles of transparency and user empowerment, but Freewallet’s practices appear to betray those ideals. New users should view this situation as a warning to favor regulated services and personal wallets over third-party providers. The Canadian user’s ordeal should serve as a reminder of the risks of trusting digital assets with entities that operate with minimal oversight.
If you or someone you know has experienced similar issues with Freewallet, we encourage you to share your story with us. By bringing these cases together, we can amplify calls for regulatory attention and hold companies accountable. Contact us at freewallet-report@tutanota.com to report your experience. After this particular user warned Freewallet of his intent to file a police report and shared his grievances publicly, the platform ultimately allowed him to withdraw his assets. This suggests that public exposure and legal consequences may be effective in gaining access to frozen funds. For anyone facing similar challenges, we advise taking similar steps—report your experiences and help build awareness around Freewallet’s conduct.