Transactions at Bluebenx Halted After $32 Million Hack

Withdrawals at Brazilian crypto lending platform, Bluebenx were halted following an alleged $32 million hack. For the next 180 days, the platform will not offer withdrawals, redemptions, deposits, or transfers. 22,000 users of the platform will have to wait for the services to restart on the crypto lending platform. Bluebenx has also laid off several of its employees following the hack.

According to reports, a lawyer with Bluebenx, Assuramaya Kuthumi has confirmed a loss of $32 million. Meanwhile, Bluebenx has promised up to 66% returns to their investors through several in-house earning avenues.

However, several investors are expressing doubts and concerns over the authenticity of the cyber attack. A user pointed , “I think there’s a high probability of it being a scam because this whole hacker attack story seems like a lot of b******t, something they invented.” Growing incidents in the crypto firms have led investors to switch to lower-risk crypto yields.

The company general of Block Earner, a Fintech company expressed concerns about the distrust among people and the shift in their preferences. The general manager of the company,

Apurva Chiranewala of Block Earner, a Fintech company expressed their concerns about the distrust among people and the shift in their preferences. He told Cointelegraph, “Given that the risks have gone up significantly for those returns, those guys have actually started coming in engaging with us because we look like the less riskier version of those double-digit return products.” The lack of trust among investors is also due to the increasing number of hacks on high-yielding crypto platforms in the recent past.

Halting fund transfers as an aftermath of the hacking has disappointed several investors. Many crypto platforms have been hacked this year including Axie Infinity’s Ronin Bridge and Nomad Bridge. This has raised eyebrows among several users over the security measures in place. As a result of several cyber attacks, over $1.4 billion has been lost from crypto bridges this year.

Blockchain networks are also trying several methods to keep their investors’ trust. Nomad offered their hackers a share of their hacked amount in return for the loot. Nomad also assured that they will not press charges against the hackers if they complied.