BlueBenz lost $32 million in an alleged hack and as such, has halted its 22,000 users from withdrawing funds. The Brazilian crypto lending fired most of its employees to get to the root of the exploitation. Reports say the platform noted that some bad actors had capitalized on some flaws, breached security, and made off with the funds.
BlueBenz is making some adjustments and has given little explanation to its clients after it axed a fraction of its employees. The platform now falls in the category of crypto firms that have failed its customers in providing them with a massive yield during these uncertain times in the market. It promised up to 66% returns for users investing in cryptocurrencies through various in-house earning avenues.
Assuramaya Kuthumi, BlueBenz’s lawyer, said the attack resulted in the loss of $32 million. Investors found it difficult to believe due to the lack of clarity about the alleged hack. An anonymous investor believes there is a high probability of all it being a scam. He argued that the whole attack story seems like a lot of bullshit, something that BlueBenz invented.
It should be noted that this argument or scenario cannot be ruled out as numerous crypto platforms, that offer high yields, have alleged similar scenarios in the past. They have halted funds withdrawal while hiding their incompetency in fulfilling the previously promised returns to the users. As such, crypto investors are trying out lower-risk crypto yields as safer strategies. An Australian fintech company Block Earner recorded a surge of investors looking for the less risky version of those returns. Apurva Chiranewala, Block Earner general manager, acknowledged that the risks have gone up significantly for those returns. They have actually started coming in engaging with the company as it looks less risky version of those double-digit return products.