BlueBenx, a cryptocurrency lending platform, has blocked all withdrawals from the platform after a massive hack on the platform. BlueBenx has become the latest cryptocurrency firm to halt withdrawals over the past few months. It is joining the likes of Celsius, Voyager Digital, and Babel Finance that halted withdrawals over the past two months.

However, unlike the previous platforms that halted withdrawals because of the bearish market conditions, BlueBenx has halted withdrawals because of a massive hack on the platform.

BlueBenx halts withdrawal after $32M hack

BlueBenx announced that the crypto lending platform had lost $32 million after an exploit. No in-depth details have been given about this hack, but the company has said it has caused a liquidity crunch, such that it is also laying off most of its employees.

BlueBenx is yet another example of a crypto lending company that has shut its doors after promising users massive returns. The crypto staking platform promised users returns of up to 66% when they invest in the platform and participate in the in-house earning platforms supported by the lender.

A local news publication has also confirmed the alleged hack on the platform. The report said that BlueBenx had halted all withdrawals from the platform after being the victim of an “extremely aggressive” exploit. The lawyer of the crypto lending firm, Assuramaya Kuthumi, has also confirmed this loss, saying that $32 million was drained from the platform.

BlueBenx investors skeptical about hack

However, investors on the platform are finding it hard to believe these hacking allegations. Some investors have claimed that there is no clarity on the alleged hack, making them doubt whether it happened.

One of the investors interviewed by Portal do Bitcoin, a local news publication, insinuated that it was a high probability of being a scam. He also said the hack was “a lot of bullshit” and likely something the crypto lender had fabricated.

The skepticism about why BlueBenx has halted withdrawals stems from the fact that multiple crypto platforms, including those offering high yields, have been in the same situation in the past. Some crypto lending firms that have gone under during the current crypto winter have hidden their incompetency in achieving the previous promises made to users.

The failure of multiple crypto firms has also increased the risk of high-yield services. Crypto investors have been taking their money out of these protocols to lower the risks posed by crypto yields and to ensure there are safer strategies to use when choosing where they can invest their money.

There have been a growing number of investors looking towards a less risky way of achieving returns from their crypto holdings, according to the Block Earner Australian fintech company. The general manager at Block Earner, Apurva Chiranewala, said the risks had increased significantly.

The executive said that some crypto companies were turning towards platforms like Block Earner because they wanted a lower risk than the products offering double-digit returns. With the changes in investor sentiment, cryptocurrency companies such as Block Earner are looking toward creating institutional products. Moreover, the growing interest in the crypto space is also driving the gains as more institutional investors continue pouring into the sector.


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