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Crypto-lending platform BlueBenx halts withdrawals citing a $32 million hack

BlueBenx, a crypto lending platform based in Brazil is reported to have halted all fund withdrawals following a hack that drained it of a whopping $32 million. All of its 22,000 users are barred from withdrawing any funds thanks to the alleged hack. Although specific details concerning the hack aren’t available, there are allegations about the company firing a good majority of its employees in the wake of the hack. Read along to know more about the hack.

BlueBenx

The What and Why

Crypto is without question, a slippery domain that requires a good deal of caution. Scams and shams in the crypto world are not a novelty but an everyday reality. Hence, BlueBenx just adds to the long list of companies that weren’t successful in living up to their promise of delivering huge returns. The alleged hack is indeed a bitter pill to swallow for the crypto lender given the fact that it had promised 66 percent returns for the users investing in crypto through different in-house earning avenues.

Reports from local news suggest that the “extremely aggressive” led toBlueBenx halting all fund withdrawals. Although BlueBenx’s lawyer gave an account of the loss worth $32 million, investors are skeptical. They find it hard to match the pieces because the clarity of the amount lost doesn’t sit well with the haze surrounding the hack.

“I think there’s a high probability of it being a scam because this whole hacker attack story seems like a lot of bullshit, something they invented,” said an unnamed investor to Portal do Bitcoin.

The investors cannot be blamed for this lack of trust given the fact that this is not an isolated event. There is a pre-existing pattern with respect to numerous other crypto platforms which promised high yields and failed to live up to their word. Hence the investors are justified in suspecting it the restraint on withdrawals is just another way of whitewashing their incompetency.

Since safety is becoming a big question when it comes to high-yield services like BlueBenx, more investors are switching boats and moving on to lower-risk crypto yields as they ensure better safety and reliability.

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