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Brazilian Crypto Investment Firm ‘BlueBenx’ Halts Withdrawals
Brazil-based crypto investment firm BlueBenx has halted customer withdrawals due to an “extremely aggressive” hack that made the company lose more than $31 million. Withdrawals are said to be suspended for at least six months.
BlueBenx has had to stop withdrawals on its platform, affecting 22,000 customers in the process. According to the firm’s attorney, Assuramaya Kuthumi, the company said it has fallen victim to a hack that made it lose more than $31 million. In an email sent to customers, informing them of the hack, it said:
La setmana passada vam patir un pirateig extremadament agressiu en els nostres pools de liquiditat a la xarxa de criptomonedes, després d'intents incessants de resolució, avui hem iniciat el nostre protocol de seguretat amb la suspensió immediata de les operacions dels productes BlueBenx Finance, incloent retirades, reemborsaments, dipòsits i transferències.
No further details were provided about the hack, but the company said that its measures would remain in force for at least six months. The firm is also reported to have let all its staff go on the same day.
The fact that the company let go of all its staff on the very same day report of the hacks surfaced, has created suspicions in the community. The company was also investigated earlier in the year by the Brazilian Securities and Values Commission after allegedly offering unregistered securities as part of its investment portfolio.
As a strategy to attract investors, the firm offered high-yield investment products. For having locked funds for a year, these products offered up to 66%.
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Font original: CryptoDaily