Yeah but usually they run Ponzi schemes (like Full Tilt the most notorious), it’s way easier and way more profitable (not to mention it emulates the banking system -which by the way is legal but that’s an other topic, far more interesting IMO).
Free chips poker sites have no interest in Ponzi schemes since there’s no point with play chips (except creating massive inflation).
There have been cases of “god modes” on some sites though, but it was really stupid and so obvious it didn’t last long enough to be profitable.
Again there’s an endless thread called the fairness debate that explores the rigged/not rigged debate, I personally believes it’s BS and the bad beats are produced by calling stations who just don’t care. And you see a great deal of it since the average hands/hour is above 60 (wwwwaaaaayyyyyyyy above like 100 is not that crazy on RP).