Brazilian Crypto Investment Platform Bluebenx Backpedals on Hack Reports, States It Was Victim of a Listing Scam – Exchanges Bitcoin News

Bluebenx, a Brazilian crypto firm that recently halted client withdrawals, has changed its story regarding the causes that led it to take this action. While the exchange issued an emailed statement informing customers that it had been the victim of a vicious hack, the company now says the liquidity issues were the result of a listing scam.

Bluebenx changes version regarding liquidity issues

Brazilian crypto investment firm Bluebenx has changed its version of the recent liquidity issues it has been facing, after halting withdrawals for some clients last week. The first explanation for this resolution included allegations that the exchange had been the victim of “extremely aggressive hacking”, with the halting of operations being part of the security protocol to handle the aftermath of the event.

However, he has now backtracked on that explanation, offering a very different take on the matter. Bluebenx explained that the incident was the result of a listing scam, in which the company agreed to pay to list its own currency, BENX, on another platform. According to a memo sent by the company to Live Partsa local source, Bluebenx had to pay $200,000 and 25 million Benx for this listing opportunity to a third party with knowledge of the unnamed listing exchange.

However, the alleged representative scammed and deprived the company of these funds. Moreover, the attacker took the 25 million BENX paid and exchanged them for USDT using the exchange’s liquidity pools, depriving it of all its stablecoin liquidity.

The company said:

BlueBenx also specifies that among its more than 25,000 customers, only 2,500 were affected by the blow. The recovery plan provides that these customers will be able to buy back their applications from 2023.

The company did not explain the reasons for this change in its explanation.

Explanation of the massive layoffs

The company also explained the layoffs it executed on the same day of this incident, which led some customers to believe they were victims of a Ponzi scheme. The company explained:

Bluebenx has taken unpopular measures and, in order to ensure the safety and guarantees of our investors, has terminated part of the employees and suppliers with privileged access, in order to limit access to accounts.

Although the company did not specify the number of employees laid off, it said that, at the moment, there are only 11 people left on the company’s payroll and that it has abandoned its headquarters. and other assets to “comply with its legal obligations and contractual obligations with its customers.

What do you think of Bluebenx’s change in explanation of its liquidity issues? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price surge happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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