BlueBenx claims to lose $32M and fire employees. The Brazilian platform BlueBenx is the subject of a double scandal following its hack. In addition to questioning its ability to secure its ecosystem, we also wonder if the layoffs that have taken place, as well as the blocking of fund retirements, are not abusive.
BlueBenx's lawyer has also justified these measures by explaining that this hack had resulted in a loss of nearly 32 million dollars.
However, many question the veracity of these facts. For the moment, the company remains very opaque when it comes to the conditions that made the hacker possible. No data has been made public. It is a behavior that questions and calls into question the legitimacy of BlueBenx to take such measures.
Who is BlueBenx and what do they promise?
BlueBenx is a firm as we see so many in the world of cryptocurrencies. It offers retail banking services using cryptos. It was launched in 2018 and offers crypto holders to collect permanent and regular interest with banking services such as loans, rewards on transactions, etc. In short, BlueBenx wants to be a 2.0 bank with high rates of return.
BlueBenx promises up to 66% returns for users who invest in in-house funds. This figure is enough to turn heads and it is also the heart of the problem. The possibility of ensuring such returns in a stable manner seems questionable.
BlueBenx claims to be hacked: doubts persist
If the doubt is permitted, it is mainly because it would not be the first time that a company invokes piracy to get out of its performance obligations.
Many other cryptographic platforms have invoked this scenario time and time again to be able to extricate themselves from their bad posture. Investors are therefore very skeptical of the claims made by BlueBenx's lawyer, Assuramaya Kuthumi.
BlueBenx's lack of clarity fails it
It is unclear exactly how the hack took place in the company. Information is scarce and the company's customers are angry. BlueBenx is like other services offering attractive returns but having gone bankrupt due to too high an advertised rate.
Many people suspect BlueBenx of not having been able to meet its return commitments to its investors.
In a local newspaper called “Portal do Bitcoin”, an investor opens up about his impressions of the BlueBenx hack:
"I think it's probably a scam because this whole hacker attack thing sounds a lot like bullshit, something they made up."
What are the consequences for BlueBenx employees and investors?
It is with this hack that BlueBenx justified the dismissal of most of its employees as well as the blocking of the withdrawals of funds from its investors. It is 22,000 users who therefore saw their capital confiscated without being able to react.
For the moment, it is impossible to know when investors will be able to withdraw their funds and if the wrongfully dismissed employees will obtain compensation. We will have to wait for BlueBenx to deliver more details on this situation to hope to see an end to it.
For the moment, the value of the company has fallen to almost zero according to the site “CoinMarketCap”.
Less risky crypto companies are harvesting more and more investors
These waves of falling high-yielding crypto companies have encouraged investors to turn to less risky companies. Yields are lower but less risky and more stable.
At the top of the list of big winners is Block Earner, who says he is experiencing a real surge in registrations on his service from investors. To compensate for this massive influx, Block Earner must work twice as hard on its services to meet demand.
The latter is much more measured in its performance promises. It offers a return on capital of 7%, which seems much more sustainable than the 66% announced by Blue Benx.
The general manager of the company Apurva, recently hired by BlockEarner as general manager, says in this regard:
"Since the risks have increased dramatically for these returns, these guys have actually started engaging with us because we look like the lower risk version of these products with double-digit returns."
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