- BlueBenx claims to have suffered an attack, halts withdrawal, and is now firing employees.
- The lender offers no further clarification on the matter and had promised its investors a huge return on their crypto investments.
- Investors are starting to wonder if BlueBenx was nothing but a carefully well-put crypto scam.
Brazilian cryptocurrency lending platform BlueBenx made a startling announcement recently, stating that owing to an assault that saw $32 million lost in funds, they would no longer be processing their 20,000+ users’ withdrawals. Furthermore, it has been stated that the company is now terminating some of its staff, despite the fact that it has not disclosed any more information about the aforementioned incident.
Before then, the company had assured customers that they would get returns on their cryptocurrency investments of up to 66 percent. Additionally, the fact that the company has not provided any additional clarification on the claimed assault and has started terminanting its staff, is now leading to doubts as to whether the entire thing was simply a meticulously constructed old-fashioned con.
Several cryptocurrency platforms that advertise high yields have time and time again ultimately banned users from withdrawing cash while concealing their inability to meet the returns that they had previously promised to their customers. This might be why investor confidence is so low at the moment. If it turns out that the BlueBenx situation is indeed a scam, it might further damage investor confidence in companies dealing with cryptocurrencies.
Speaking with Cointelegraph, the general manager of the firm, Apurva Chiranewala, noted that despite the fact that the risks have increased dramatically for those returns, BlueBenx’s customers have actually begun coming in and dealing with them because they seem to be the less risky version of those high yields companies.
Given that the risks have gone up significantly for those returns, those guys have actually started coming in engaging with us because we look like the less riskier version of those double-digit return products.
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