Thank you for the detailed explanation,now I understand it completely.Still a great offering I would say to people who can permit to risk 1 or 2 Bitcoin as I don't see any banking interest to even come close or compete with such return for one year if you put let's say a Bitcoin with price 43.000 USD you get as an interest after a year 1754 USD as a reward.I would love to see a bank which can do that as in Europe I know for sure there is none,but may be there is in US I don't know.
A great but also illegal offering. BlockFi just agreed to pay $100 million dollars to the SEC because their interest accounts were not compliant with securities regulation. If freebitco.in was fined $100 million there is next to zero chance that any large investor ever gets their BTC back.