Parkway Accused of $100M Ponzi Arrangement As It Halts Withdrawals
Crypto yield platform Parkway halted all withdrawals on its platform that holds over $100 million consumer resources citing “unparalleled volatility.”
In step with a screenshot shared by pseudonymous researcher FatManTerra, Parkway co-founder Graham Doggart acknowledged the platform would be halting all withdrawals in a Discord announcement at around 12:00 pm ET on Sunday.
Parkway has reportedly deleted the names of the entire team people on its internet living that now displays the identical message posted to its Discord server earlier within the day.
“As all of you can undergo in thoughts, there became as soon as unparalleled volatility in International Alternate and Cryptocurrency markets in most up-to-date cases,” read the Parkway update.
The company claimed it might maybe well perchance well be diversifying its asset imperfect to manipulate this volatility within the name of making sure the “lengthy urge sustainability and profitability” of its ecosystem.
For context, Parkway is a crypto platform that guarantees an annual yield of 43% if users buy and stake its “Supercharger” simulations.
FatManTerra, identified for his analysis in disclosing on-chain scams, first alerted users that Parkway became as soon as maybe working a Ponzi scheme in a tweet on Saturday.
“In my glimpse, it’s seemingly that Parkway will give way interior the next few months and that every depositors will lose the total lot,” acknowledged FatManTerra, after he noticed about a mountainous withdrawals being delayed on the platform.
After digging deeper into the platform’s claims, FatManTerra noticed several inconsistencies, alongside side faux disclosures on the online living an unclear monetization strategy.
Parkway is speculated to be in custody of extra than $100 million rate consumer funds. At the time of writing, Parkway’s native token FWT became as soon as trading at $0.001754, down 71% over essentially the most attention-grabbing 24 hours.
Source credit : unchainedcrypto.com