Brazilian Crypto Platform Halts Withdrawals, Scam Or Hack?

In a shocking revelation, a Brazilian crypto lending company announced halting of withdrawals due to an attack. A company representative of BlueBenx said the company suffered a hack worth $32 million. The company promised users of delivering high returns by investing in cryptocurrencies. This is leading to questions on whether the alleged Brazil crypto scam was real or not. The company had promised returns of up to 66% for their crypto investments.

BlueBenx Halts Withdrawals Over Alleged Hack

According to Brazilian news reports, the BlueBenx users do not believe in the company’s narrative of a hack. The reports quoted users as saying that the hacking argument was just an excuse to cover up the scam. “I think there’s a high probability that it’s a scam because this whole hacking thing seems like something they made up,” said the user. Colin Wu, a 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.”

As per recent studies, hackers duped users with a record $14 billion in cryptocurrencies in the last calendar year. If the BlueBenx incident comes out to be a Brazil crypto scam, it could further dent investor trust in crypto companies. BlueBenx claims to be a “high performance crypto platform” that offers regular interests for crypto investments. Users are promised incremental liquidity and multiple rewards. Founded in 2017, BlueBenx develops products and solutions related to blockchain and cryptocurrencies, as per its website.

Increasing Cases Of Crypto Frauds

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

Anvesh reports 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 out at [email protected]

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