BlueBenx lending platform has reportedly blocked all of its 22,000 users from withdrawing their funds following an alleged hack that drained $32 million .While no details about the hack were made available, the company allegedly laid off most of its employees.
BlueBenx joins the growing list of crypto companies that failed to deliver on their promise of exorbitant yield returns this crypto winter. The Brazilian crypto lender promised up to 66% returns for users investing in cryptocurrencies via various in-house earning avenues.
BlueBenx halted all forms of withdrawals after falling victim to an “extremely aggressive” hack. According to BlueBenx’s lawyer the attack resulted in the loss of $32 million, which investors found hard to believe given the lack of clarity about the alleged hack.
The lack of trust among investors stems from the fact that numerous crypto platforms that offer high yields have alleged similar scenarios in the past, wherein they end up halting funds withdrawal while hiding their incompetency in fulfilling the previously promised returns to the users.
Considering the growing risks involved in high-yield services, as stated above, crypto investors are now on the move to trying out lower-risk crypto yields as safer strategies.
