Bluebenx is a Brazilian cryptocurrency investment platform. Last week, Bluebenx suspended withdrawals because of an alleged hacker attack that caused it to lose over $31 million. According to the company, withdrawals will be stopped for at most six months. Brazilian Securities and Values Commission (CVM), has begun an investigation into the company.
Bluebenx Ends Withdrawals; Allegatedly Loses $31+ Million in Hack
Bluebenx, the Brazilian crypto investment platform, suspended withdrawals from its platform on Thursday. It affected around 2,500 customers. The company alleges it was the victim of a hack that made them lose more than $31 million, according to Assuramaya Kuthumi, Bluebenx’s attorney.
Last Friday, the company sent an email explaining why it was withdrawing. It was reported as follows:
We suffered an extreme hack in the liquidity pools of the cryptocurrency network last week. After incessant attempts to resolve the issue, today’s security protocol was initiated. It includes the immediate suspension or withdrawal of BlueBenx Finance products as well as redemptions, deposits and transfers.
The nature of attack was not disclosed, however, the communication stated that this would last at most for 180 days. According to reports obtained from Portal do Bitcoin by a local source, all employees were fired on Thursday. According to the statements of the ex-employee, more than 30 people were dismissed.
Suspicious Circumstances
It is unclear what caused the withdrawal suspension due to the timing of the hack and the massive layoffs that occurred at the company. Brazilian Securities and Values Commission investigated the company in relation to a alleged offering unregistered securities for its investments portfolio.
Customers were enticed to invest by the high-yield products offered by the company. These products offered up to 66% for having invested funds locked for a year, Some of these instruments did not disclose the investment strategy behind them, per customers’ statements. Unidentified customer voiced concerns about the future funds on the platform. He said:
I think there’s a high probability that it’s a scam because this whole hacking thing seems like something they made up.
Others have also claimed that hackers were used to prevent them from paying customers. Trust Investing was one example. It also stopped customers from withdrawing for nine months because of an alleged hack attack.
Brazilian Congress is discussing legislation that will increase the penalties for crimes related to crypto. It would be used as a deterrent against individuals and businesses from selling scam products and participating in pyramid schemes.
How do you feel about Bluebenx? And the alleged $31,000,000 hack incident. Comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.