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Greek Regulator Revoked License Of Ardu Prime, Partner in the Collapsed Crypto Scheme Freeway!

The collapse of crypto scheme Freeway
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The crypto lending company Freeway, formerly known as AuBit a/k/a Aubit International, has met its demise following the Grand Court of the Cayman Islands’ decision to liquidate its parent company, AuBit. On January 11, 2024, the Hellenic Capital Market Commission (HCMC) withdrew the license of the Greek broker Ardu Prime, which played a pivotal role in the collapse of the Freeway scheme.

The Cayman Island Judgement Against AuBit

The Cayman Island judgment to liquidate AuBit International marked the endpoint of a series of challenges that the crypto lending platform Freewave has faced in recent times, culminating in the court’s dismissal of AuBit‘s plea for restructuring. Instead, the court ordered liquidation, leaving the fate of the $160 million invested by Freeway’s 5,000 retail investors uncertain.

Appointed on October 16, 2023, as Joint Official Liquidators (JOLs) by the Cayman Islands Court, David Griffin and Andrew Morrison from FTI Consulting began overseeing the dissolution of the company. Initially launched as Aubit in 2020 and rebranded to Freeway, the platform issued Freeway tokens (FWT) and underwent several operational changes. In early 2022, AuBit International was listed as the operator on the Freeway website, a detail later altered with Freeway Operations Inc., headquartered in Seychelles, taking over.

The platform’s seemingly prosperous trajectory was highlighted in a 2020 press release announcing Staminier Limited‘s purchase of 400,000,000 Freeway Tokens. Freeway also introduced a high-yield crypto staking program, Supercharger, promising up to 43% annual returns.

The Ardu Prime Connection

However, AuBit disclosed that funds from this program were transferred to a brokerage account at Ardu Prime, a Greek brokerage, to secure credit. AuBit has accused Ardu Prime of failing to process withdrawals and alleges being defrauded by them. Ardu Prime, reportedly linked to convicted fraudster Anthony Constantinou, faces accusations of defrauding investors of over $86 million.

There are unverified claims within the crypto community about Ardu Prime’s ownership of AuBit, but no public records substantiate this. In October 2022, Freeway suspended withdrawals and disabled buy/sell functions due to “trading losses,” trapping over $160 million of investor funds.

Greek regulator revoked license of Ardu Prime and fined the company and its director

The liquidation of AuBit in October 2023 by the Cayman Islands court represents a significant blow in the crypto lending industry, reminiscent of the collapses of Celsius and other platforms. This sector, which once promised high returns, now faces skepticism and regulatory scrutiny. A lawsuit contends that AuBit transferred customer funds to Ardu Prime with assurances of segregated accounts, but as issues escalated, AuBit accused Ardu Prime of non-cooperation and withholding over $60 million.

On January 11, 2024, the Hellenic Capital Market Commission (MCMC) withdrew Ardu Prime’s authorization, imposed fines totaling €420,000 for organizational and anti-money laundering violations, and removed the company from key registries. The CEO, Sotirios Promponas, was also fined €70,000 for infringements.

The Ardu Prime website does not yet provide any information on the withdrawal of the license and still claims to be an authorized broker.

Where is the Money?

This development might signal the end of the Ardu/AuBit saga, although the legal process is expected to extend for months, if not years. It seems that all the companies involved are now closed or penalized, but nobody seems to know where the $160 million (or so) is. If you have any information on this, please let us know via our whistleblowing system, Whistle42.

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