Brazilian crypto platform stops withdrawals, scams or hacks?

In a shocking revelation, a Brazilian crypto-lending company announced the suspension of withdrawals due to an attack. A representative for BlueBenx said the company suffered a hack worth $32 million. The company promised users to deliver high returns by investing in cryptocurrency. This leads to questions about whether the alleged Brazilian crypto scam was real or not. The company had promised returns of up to 66% for its crypto investments.

BlueBenx stops withdrawals after alleged hack

According to Brazilian news reports, BlueBenx users do not believe the company’s tale of a hack. The reports quoted users as saying that the hacking argument was just an excuse to cover up the fraud. “I think it’s very likely a scam because this whole hacking thing seems like something they made up,” the user said. Colin Wua crypto reporter, revealed that the company had fired a majority of employees, raising more suspicion.

“Users of BlueBenx, a Brazilian cryptocurrency investment platform with more than 22,000 users, can no longer withdraw funds, which promises returns of up to 66% by investing in cryptocurrencies. BlueBenx claimed to have been hacked and fired most of its employees.”

According to recent studies, hackers defrauded users of a record $14 billion worth of cryptocurrency in the past calendar year. If the BlueBenx incident turns out to be a Brazilian crypto scam, it could further undermine investor confidence in crypto companies. BlueBenx claims to be a “high-performance crypto platform” that offers common interests for crypto investments. Users are promised incremental liquidity and more rewards. Founded in 2017, BlueBenx develops products and solutions related to blockchain and cryptocurrencies, according to its website.

Increasing cases of crypto fraud

Last month, the founder of MBI, who had allegedly defrauded millions of dollars in cryptocurrency, was arrested. The MBI group defrauded over 400 people in China of over 100 million yuan in crypto.

Anvesh reports on major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him at [email protected]

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