BlueBenx lays off employees, suspends withdrawal of funds, citing $32M hack

Brazilian crypto lending platform BlueBenx has reportedly blocked all 22,000 users from withdrawing funds after a hack that allegedly drained $32 million (or 160 million Brazilian reals). I’m here. Details about the hack have not been made public, but the company is said to have laid off most of its employees.

BlueBenx joins the list of crypto companies that failed to deliver on promises of exorbitant yields this crypto winter. A Brazilian crypto lender promised returns of up to 66% to users investing in cryptocurrencies through various in-house revenue vehicles.

A report from local news board Portal do Bitcoin highlights that BlueBenx has suspended all forms of withdrawals after falling victim to a “very aggressive” hack. The attack cost him $32 million, according to his BlueBenx attorney Assuramaya Kuthumi.

In the (loosely translated) words of an unnamed investor, he told Portal to do Bitcoin:

“I think this hacker attack story is likely a scam because they made it up and it seems like a hoax.”

The lack of confidence among investors stems from the fact that numerous cryptocurrency platforms offering high yields have claimed similar scenarios in the past. They will stop withdrawing funds while hiding their inability to realize previously promised benefits to users.

RELATED: Investors Move to Low-Risk Crypto Yields — Block Earner GM

Given the increased risk associated with high-yield services, as noted above, crypto investors are now moving to try lower-risk crypto yields as a safer strategy.

Australian fintech firm Block Earner has seen a surge in investors seeking a “less risky version” of these returns. Apurva Chilanewala, general manager of the company, told Cointelegraph:

“Given that the risk of those returns has gone up significantly, those people are really starting to engage us because it looks like a lower-risk version of a double-digit return product.”

As a result of the shift in Inverter sentiment, cryptocurrency companies like Block Earner will need to build institutional products at the same time as interest in the space increases.

BlueBenx lays off employees, suspends withdrawal of funds, citing $32M hack

Source link BlueBenx lays off employees, suspends withdrawal of funds, citing $32M hack

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