On July 1, 2025, X user identified as @jamesonnickname publicly accused the FreeWallet platform of inferring funds from their accounts without prior notice. The incident occurred after several years of inactivity in his wallet and spread through the threads he described his experiences. This case is similar to another recent incident in a Lightning Network Bitcoin wallet called Alby, which raises questions about transparency in the terms of use of custody services and protection of user funds.
In his publication, Jameson states that the free wallet has withdrawn a significant amount of balance in Dogecoin (Doge) and claims the account. He remained inactive for a long time. According to his testimony, he received no prior notice or warning before the deduction was made. He also claims that in addition to ignoring the FreeWallet Technical Support Service, he was unable to complete the Repeated Funding (KYC) (KYC) process.
As reported by Cryptootics, this type of service provision does not extend public knowledge, However, they are considered in many detained wallet conditions.
In fact, FreeWallet’s Terms of Service establishes that if your account does not present activity for several years, the company will attempt to use its registration information to contact the owner. If you do not establish a communication, and according to the “law” FreeWallet can report funds as private property. Additionally, the platform guarantees the right to infer the inactivity and other management committees of the fund.
If FreeWallet has Cryptoactive in an account with his name and does not record activity for several years, he will try to find it at an address on our record. If we do not contact it, applicable law may require FreeWallet to report these funds as property that has not been claimed prior to the corresponding jurisdiction. FreeWallet reserves the right to infer inactivity or other management committees of such unclaimed funds as permitted by law.
FreeWallet, Custodial Cryptocurrency Wallet.
This case highlights the persistent tension between its own custody and its representative to a third party. An inappropriate wallet has full control over the private key to the user, but platforms like FreeWallet work in a custody model. The company is ultimately managing its assets You can also apply any internal policy, such as inactivity deductions.
The practice of charging commissions on inactive accounts is not new in the traditional financial sector, but application in the philosophically directed cryptocurrency field suggests a specific challenge. The opacity of some terms, the lack of effective advance notice, and the difficulty of recovering once estimated funds are important aspects of these wallet models.
So far, FreeWallet has not issued an official statement in response to a thread issued by Jameson. He responded to his publications by citing his terms and provisions of services.
As reported by Cryptonotics, a similar situation has recently occurred in Albe, a Lightning Network wallet. The company will provide a refund of Bitcoin deducted from inactive users’ accounts through communication with Technical Support, but this process can be expensive as it requires the creation of a lightning channel, in addition to committee payments related to carrying out these and other necessary actions.