BlueBenx Reportedly Stops Withdrawals Amid $32M Exploit

BlueBenx Reportedly Stops Withdrawals Amid $32M Exploit
  • The bulk of employees were supposedly let go following the exploit.
  • Numerous crypto platforms have claimed similar circumstances in the past.

After a hacker allegedly stole $32 million from the Brazilian crypto lending company BlueBenx, all 22,000 of its members had their withdrawals frozen. Despite the fact that the corporation has not provided any information regarding the attack, a large number of people have apparently lost their jobs.

BlueBenx is just the latest cryptocurrency exchange to fail to deliver on its promised very high yield returns during this year’s crypto winter. The Brazilian cryptocurrency lender advertised returns on cryptocurrency investments of up to 66% annually via multiple internal revenue streams.

Investors Losing Faith

In the wake of an “extremely aggressive” breach, BlueBenx reportedly stopped all withdrawals, according to a post on the regional Cryptocurrency news board Portal do Bitcoin. Although Assuramaya Kuthumi, a lawyer for BlueBenx, claims that $32 million was stolen in the assault, investors have a hard time believing this number given the ambiguity surrounding the purported breach.

Numerous crypto platforms have claimed similar circumstances in the past, whereby they end up preventing money withdrawal while masking their incompetence in meeting the previously promised returns to the consumers. This has caused a lack of confidence among investors.

Given the aforementioned increases in risk associated with high-yield services, many cryptocurrency investors are shifting their focus to lower-risk cryptocurrency yields in search of more reliable returns. The bulk of employees were supposedly let go, although no details regarding the incident were disclosed.

The crypto world is outraged over the United States government’s prohibition on the Ethereum mixing service Tornado Cash and the enforcement that has followed. Numerous crypto and privacy enthusiasts have spoken out against the government’s current activities.

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A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.