Bluebenx is a Brazilian cryptocurrency company which recently stopped customers from withdrawing funds. However, the company has now changed their story about what caused it to do so. Although the exchange had sent out an email to inform customers that they were victims of a hacker attack, it now states that the reason for the liquidity problem was a scam.
Bluebenx Changes Versions on Liquidity Problems
Brazilian crypto-investment company Bluebenx updated its version to reflect recent liquidity issues. It had recently stopped some customer withdrawals last week. The first explanation of this resolution included allegations of the exchange being the victim of an “extremely aggressive hack,” with the operations halt being part of the security protocol to handle the aftermath of the event.
But, it now has a different interpretation of the matter and has retracted its explanation. Bluebenx said that it was the outcome of a fraud in which the company paid for the listing of its own currency BENX on another platform. A note that Bluebenx sent to Livecoins, an local source, stated that the company had to fork out $200,000 and $25 million Benx to secure the listing opportunity.
The alleged representative swindled the funds and deprived the company. Additionally, the attacker stole 25 million BENX, paid by the victim, and then exchanged it for USDT through the liquidity pools, depriving the company’s stablecoin liquidity.
According to the company:
BlueBenx further clarified that of the more than 25,000 customers affected, only 2,500 were impacted by the storm. These customers can redeem their application starting in 2023 under the recovery plan.
This explanation was not provided by the company.
Massive Layoffs Explanation
It also explained why it had executed layoffs on the exact same day as this incident. This led some customers to think they were victims of Ponzi schemes. According to the company:
Bluebenx took some unpopular steps to protect our investors. We fired a portion of employees and suppliers that had access to the account accounts.
While the company did not specify the number of employees that were fired, it did report that, for the time being, only 11 people remained on the company’s payroll, and that it had abandoned its headquarters and other assets to “comply with its legal and contractual obligations with its customers.”
How do you feel about Bluebenx changing their explanation of its liquidity issues? Leave a comment below.
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