A Brazilian Bitcoin and altcoin loan company has announced that it has stopped withdrawals due to an attack. A company representative of BlueBenx said that the company suffered a $32 million hack. The company was promising users high returns by investing in cryptocurrencies. This raises questions as to whether the alleged Brazilian crypto scam is real. The company had promised returns of up to 66 percent on its crypto investments. Here are the details…
Bitcoin platform stopped withdrawals with alleged hacking
According to the news of Brazilian-based platforms, BlueBenx users do not believe in a hack narrative of the company. Reports cited users saying that the “hacking” argument was just an excuse to cover up the scam. One user commented, “I think it’s highly likely that this is a scam. Because this whole hacking thing looks like something they made up,” he said. Colin Wu, a crypto reporter, said that the company laid off most of its employees. Thus, he explained that the platform arouses more suspicion. Wu’s explanations are as follows:
Users of the Brazilian cryptocurrency investment platform BlueBenx, which has more than 22,000 users, are no longer able to withdraw funds. The platform was promising returns of up to 66 percent by investing in cryptocurrencies. BlueBenx claimed it was hacked and laid off most of its employees.
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. https://t.co/le9S12K4jg
— Wu Blockchain (@WuBlockchain) August 13, 2022
Cryptocurrency scams on the rise
According to recent research, hackers stole $14 billion in investments in cryptocurrencies over the past year. If the BlueBenx incident turns out to be a Brazilian crypto scam, it could further undermine investors’ trust in crypto companies. BlueBenx claims to be a “high-performance crypto platform” that offers regular benefits for crypto investments. It promised users increased liquidity and multiple rewards.
Founded in 2017, BlueBenx develops products and solutions related to Blockchain and cryptocurrencies, according to its website. As we reported as Kriptokoin.com, last month, the founder of MBI, who allegedly defrauded millions of dollars in cryptocurrency, was arrested. MBI group stole as much as 100 million yuan in crypto. Thus, he defrauded more than 400 people in China.
The general lack of trust among investors has good reason. Many crypto platforms that offer high returns have used similar scenarios in the past. Platforms that hide their inability to deliver on the returns promised to users, generally stop the withdrawal of funds. As noted above, given the increased risks in high-yield services, crypto investors are now turning to safer strategies. Therefore, they started experimenting with lower risk crypto returns.
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