Coffe Network said on July 13 that one of Freeway’s “bridges” had been broken into on July 12.

Dear Neighborhood,

Yesterday, one of the bridges we were building for our project was damaged.

Targeted was our partner Freeway, and a lot of FWT tokens were taken from our hot wallet and sold on exchange.

But all of the money has now been moved to a new wallet, where it is safe.

We have stopped all bridge swaps while we look into what happened and make changes to the bridges.

When we find out more, we’ll let you know. Thank you.

Sadie Hutton from Aubit sent out an update on July 16, and well, it doesn’t really make sense.

Based on Hutton’s report;

A lot of FWT tokens were taken out of Coffe’s bridging wallet and then sold, which caused the price to fluctuate a lot.

Hutton means that FWT fell apart when he says “volatility.”

On July 13, FWT went from $0.0074 to $0.001059 over the course of five minutes (0.007 to 0.001 in simpler terms).

Because its Ponzi scheme didn’t work, Freeway

“locked” the internal FWT value, disabled FWT withdrawals, deposits, and investments, pulled available funds to withdraw, and asked exchanging listing FWT to “stop transactions.”
Then, Freeway started making plans to start a new smart-contract version of its Ponzi scheme.

And we decided to redeploy a new Freeway token smart contract based on a snapshot taken before the exploit.

We plan to move again next week.

With the new smart contract, new Freeway tokens will be made and given out the same way they were before the hack. The plan is to keep going as if the hack had never happened.

But it did.

One thing that neither Coffe Network nor Hutton says is how much money the hacker is thought to have taken.

In response to Coffe Network’s announcement, someone said, “The hacker got away with 434 BNB and 348 ETH.”

If that is correct, it only adds up to a meager $651,525.

I don’t know if that number is true or not, but it does make you think.

If it only took a little more than $500,000 to sink FWT, what will happen when investors start pulling out that much money all the time?

If you don’t understand how Freeway makes money, you should know that they pay annual returns of up to 43%. FWT, which Freeway makes out of nothing, is used to do this.

Cashing out, which is what the “hacker” is said to do, works as long as there are funds invested to cash out.

Between May and June, almost half as many people went to Freeway’s website:

Most of Freeway’s investors come from Canada, where 45% of website visitors come from. South Africa is only a quarter of that, but it comes in second.

What if all of this was just a plan? It’s not quite an exit scam, but it’s close. In a way, it was a small scam to get them to leave.

Freeway can’t sell anything without investors knowing about it. So why not just sell tokens outside of the opportunity to invest…

These tokens were never meant to be in circulation. Instead, they were only used to connect two blockchains.

…cash out some money, make up some “hackers!” nonsense, and then reset everything except for the money that was cashed out from the back end.

Investors in the highway will see this as a win. Freeway’s token will go back up to $0.008 because that’s where the reboot smart contract will put FWT. As of July 13, FWT was worth $0.0073.

Like all Ponzi schemes, they don’t know how much money is actually left to withdraw.

The people in charge of Freeway get to look like the good guys while taking a little extra off the top.

There could be a real hacker from the outside, but it seems strange. So far, Coffe Network has said that they only went after Freeway. That seems very particular.

If the problem was on Coffe Network’s end, why wasn’t anyone else affected?

If Freeway’s security was the problem, has the exploit been fixed?

Do either Freeway or Coffe Network even know what the exploit is?

It looks like bringing back Freeway’s Ponzi scheme is more important than finding out what’s going on.

On the other hand, I guess it takes a lot of work for not a lot of payoff. If you take your admin cut off the back end, you’re going to scare investors anyway, so the result is pretty much the same.

Well, except for the part where we said “Don’t worry, we fixed it!” The trust of investors is the most important thing for a Ponzi scheme.

Update, October 24, 2022: The freeway has caved in.

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