FreeWallet accused of ‘robbery’ via hidden fees and KYC delays

By admin On Jul 1, 2025

FreeWallet, a custodial wallet that has operated for nearly a decade, is facing allegations of theft and a complex scheme to drain customers of funds.

In a public plea for help, a customer claims that months of needlessly lengthy know your customer (KYC) verification delays are FreeWallet’s excuse to charge monthly maintenance fees tantamount to “robbery.”

As the complaint escalated into public accusations, FreeWallet claims to be actively working on a resolution this morning.

FreeWallet offers both custodial and non-custodial wallets. Relevant to this complaint is its custodial wallet service, which launched in 2016 when the price of bitcoin (BTC) was less than $1,000.

According to the customer’s complaint, FreeWallet is abusing its powerful status as one of the oldest custodial crypto wallets. Specifically, the customer claims to own DOGE in his wallet that he deposited “years” ago.

Depending on the holding period, DOGE has almost certainly appreciated in value since that deposit. If the customer deposited DOGE prior to 2021, for example, it has rallied at least 3,000%.

However, the customer claims that FreeWallet’s monthly inactivity fees are little more than theft.

Indeed, one FAQ is unambiguous. “Freewallet is free to join and the majority of our services are absolutely free,” it reads.

It continues, “Sending and receiving crypto assets between the Freewallet members, as well as holding them in the wallets is 100% free.”

However, another webpage on the same domain notes that holding certain crypto assets is not free.

On this conflicting webpage, FreeWallet claims the right to charge “50 USDT or the equivalent in another cryptocurrency” for every month of inactivity after the customer’s first six inactive months. It defines inactivity as performing no outgoing, exchange transactions, or crypto purchases.

Please share your FreeWallet ticket number

Because many FreeWallet customers have forgotten about their crypto deposits during its early years of operation, FreeWallet can leverage its terms of use against customers.

If they ever remember to log back in, it can deter them from withdrawing with lengthy demands for increasingly detailed information.

According to the complaint, customers grow frustrated with delays and are exasperated by unearthing old data like transaction IDs and email receipts from many years ago. All the while, FreeWallet benefits from a substantial inactivity fee.

Interestingly, FreeWallet decided to publicly acknowledge the customer via social media. The company’s official X account responded yesterday, “Please note that no funds were ever stolen. The fees are charged according to our terms of use.”

Today, FreeWallet followed up, saying, “Please share your ticket number so we can look into its details.”

Protos reached out to FreeWallet for comment but did not receive an immediate response. Given that the customer’s support ticket is open and under investigation as recently as this morning, it’s possible that the customer will be granted access to withdraw their assets or potentially qualify for a refund of inactivity fees.

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