BlueBenx terminates staff and halts withdrawals, claiming a $32 million breach

Assuramaya Kuthumi, the attorney for BlueBenx, said that the assault resulted in a $32 million loss, which many investors found hard to accept.

BlueBenx, a Brazilian crypto-lending site, apparently prevented all 22,000 customers from retrieving their assets after a $32 million theft (or 160 million Brazilian real). Most of the company’s workers were reportedly let go despite the lack of information about the attack.

BlueBenx joins the expanding list of crypto firms that have failed to deliver on their promises of extravagant yield returns during the crypto winter. The Brazilian crypto lender guaranteed up to 66% profits for individuals investing in cryptocurrency via various internal income channels.

BlueBenx ceased all withdrawals after falling prey to a “very aggressive” breach, according to a report from the local Bitcoin news website Portal do Bitcoin. BlueBenx’s attorney, Assuramaya Kuthumi, said that the assault resulted in a $32 million loss, which investors found hard to accept given the lack of information around the purported breach.

According to the statements of an unknown investor to the Bitcoin Portal: “I believe there is a strong likelihood that it is a hoax since the whole cyber assault claim seems to be fabricated nonsense.”

The lack of investor confidence derives from the fact that various crypto platforms that claim high returns have accused similar circumstances in the past, in which they end up suspending cash withdrawals while concealing their inability to provide the previously promised returns to the consumers.

In light of the aforementioned increased hazards associated with high-yield businesses, crypto investors are now experimenting with lower-risk crypto yields as safer tactics.

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