Following an alleged hack that drained $32 million, Brazilian crypto investment platform Bluebenx reportedly blocked all of its 22,000 users from withdrawing their funds.Â
Bluebenx has not only stopped withdrawals citing a $32 million hack (or 160 million Brazilian real) but also failed to deliver its promise of exorbitant yield returns this crypto winter. The company also announced that the withdrawal would be halted for at least 6 months.
The Brazilian crypto lender promised up to 66% returns for users investing in cryptocurrencies via various in-house earning avenues. On the other hand, investors find it hard to believe the recent incident given the lack of clarity about the alleged hack.
In the roughly translated report, an unnamed investor told a local news board ‘portaldobitcoin’ that there’s a high probability of it being a scam as this whole hacker attack story seems like a lot of bullshit, something that they invented.
The lack of trust among investors is due to the fact that many platforms that offer high yields have alleged similar scenarios in the past which resulted in halting funds withdrawal. These sort of platforms hide their incompetency in fulfilling the promised returns to the users by pulling such made-up hack stunts.
Considering the risk associated with high-yield services, crypto investors are now skeptical to believe what Bluebenx has to say. However, the company wrote in an email to customers explaining the reason for the withdrawal saying it suffered an extremely aggressive hack in their liquidity pools.
Consequently, after continuous attempts to resolve the issue, the company started security protocol with the immediate suspension of operations of Bluebenx Finance products. This includes withdrawals, redemptions, deposits, and transfers.
Though no details were shared in regard to the alleged hack, the measures would be active for 180 days, at least.
In what seems like a crypto winter, many firms are facing severe consequences. Last week, the German crypto exchange Nuri filed for insolvency with a Berlin court considering the sudden sell-off in the crypto market coupled with the bankruptcy of the Celsius network. Bluebenx’s move is no exception to the bearish conditions.
