Brazilian Crypto Platform Stops Withdrawals, Scams or Hacks?

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Brazilian Crypto Platform Stops Withdrawals, Scams or Hacks?

In a shocking revelation, a Brazilian crypto credit company has announced that it has stopped withdrawals due to an attack. A BlueBenx representative said the company suffered a hack worth $32 million. The company promised users to provide high returns by investing in cryptocurrencies. This leads one to wonder whether the alleged scam in Brazil was real or not. The company had promised returns of up to 66% for its crypto investments.

BlueBenx stops withdrawals over alleged hack

According Brazilian reports, BlueBenx users don’t believe the company’s hacking tale. Reports quote users saying the hacking argument was just an excuse to cover up the scam. “I think there is a high probability that this is a scam because this whole hacking thing looks like something they made up,” the user said. Colin Wua crypto journalist, revealed that the company had laid off a majority of employees, raising further suspicion.

“Users of BlueBenx, a Brazilian cryptocurrency investment platform with over 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.

According to recent studies, hackers tricked users with a record $14 billion in cryptocurrencies during the last calendar year. If the BlueBenx incident turns out to be a crypto scam in Brazil, it could further damage investor confidence in crypto companies. BlueBenx claims to be a “high performance crypto platform” that offers regular interest for crypto investments. Users are promised additional liquidity and multiple rewards. Founded in 2017, BlueBenx develops products and solutions related to blockchain and cryptocurrencies, according to its website.

Increase in Crypto Fraud Cases

Last month, the founder of MBI, who allegedly defrauded 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 regarding crypto adoption and price analysis. Associated with the industry since 2016, Anvesh is a strong advocate for decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and contact him at [email protected]

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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