Last Updated on 54 mins by cryptoevent

BlueBenx, a cryptocurrency lending platform, has blocked all withdrawals from the platform after a massive hack on the platform. BlueBenx is the latest cryptocurrency firm to halt withdrawals in recent months. It joins the likes of Celsius, Voyager Digital and Babel Finance, which halted withdrawals over the past two months.

However, unlike the previous platforms which stopped the withdrawals due to the declining market conditions, BlueBenx has stopped the withdrawals due to a massive hack on the platform.

BlueBenx stops paying out after $32M hack

BlueBenx announced that the crypto lending platform lost $32 million after an exploit. No details were given about this hack, but the company has said it caused a liquidity crisis, causing it to lay off most of its employees as well.

BlueBenx is another example of a crypto lending company that closed its doors after promising users massive returns. That crypto staking The platform promised users returns of up to 66% if they invest in the platform and participate in the lender-backed internal earning platforms.

A local news publication has also confirmed the alleged hack on the platform. The report states that BlueBenx halted all withdrawals from the platform after falling victim to an “extremely aggressive” exploit. The crypto lending firm’s attorney, Assuramaya Kuthumi, has also confirmed this loss, saying that $32 million was withdrawn from the platform.

BlueBenx investors are skeptical about Hack

However, investors on the platform have a hard time believing these hacking allegations. Some investors have claimed that there is no clarity on the alleged hack, leading them to doubt whether it happened.

One of the investors interviewed by Portal do Bitcoin, a local news publication, suggested there was a high probability of a scam. He also said the hack was “a lot of bullshit” and likely something the crypto lender fabricated.

The skepticism as to why BlueBenx stopped withdrawing stems from the fact that several crypto platforms, including high-yield ones, have faced the same situation in the past. Some crypto lending firms that have gone under during the current crypto winter have hidden their incompetence in fulfilling previous promises to users.

The failure of several crypto firms has also increased the risk of high-yield services. Crypto investors have taken their money from these protocols to reduce the risks posed by crypto returns and to ensure there are safer strategies to use when choosing where to invest their money.

According to Australian fintech firm Block Earner, there is a growing number of investors looking for a less risky way to earn returns from their crypto holdings. Block Earner chief executive Apurva Chiranewala said risks have increased significantly.

The executive said some crypto companies are turning to platforms like Block Earner because they want less risk than the double-digit return products. With investor sentiment changing, cryptocurrency companies like Block Earner are looking to develop institutional products. Additionally, growing interest in the crypto space is also driving gains as more institutional investors flock to the sector.

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The post Brazil’s BlueBenx Exchange Stops Withdrawals After $32M Hack Let’s Employees Go appeared first on Business 2 community.

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