Brazilian Crypto Investment Platform Bluebenx Opposes Hacking Report, Says It Was Victim of Listing Scam – Bitcoin News

Bluebenx, a Brazilian cryptocurrency firm that recently stopped customer withdrawals, has changed its narrative about the reasons for the move. While the exchange released an email statement informing customers that it was the victim of a malicious hack, the company now says the liquidity issues were the result of a listing scam.

Bluebenx switches version regarding liquidity issues

Brazilian crypto investment firm Bluebenx changed its version of the liquidity issues it faced recently, halting withdrawals for some clients last week. The first explanation of the resolution included allegations that the exchange was the victim of an “extremely aggressive hacking attack” and that the cessation of operations was part of a security protocol to deal with the consequences of the incident.

However, it has now abandoned that interpretation, offering a very different take on the issue. Bluebenx explained that the incident was the result of a listing scam, and the company had agreed to pay for the listing of its own currency, BENX, on another platform. According to a note the company sent to local source Livecoins, Bluebenx had to pay $200,000 and $25 million for the listing of Benx to third parties familiar with the unnamed listing exchange.

However, the alleged representatives defrauded and deprived the company of these funds. In addition, the attackers used the exchange’s liquidity pool to exchange the 25 million BENX paid into USDT, depriving it of all stablecoin liquidity.

The company stated:

BlueBenx also clarified that out of its more than 25,000 customers, only 2,500 were hit. The recovery plan states that these customers will be able to redeem their apps from 2023.

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

Mass layoffs explained

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

Bluebenx has taken unpopular steps to limit access to accounts by firing some employees and suppliers with privileged access to ensure the safety and security of our investors.

While the company didn’t specify the number of employees laid off, it did report that there are currently only 11 people left on the company’s payroll, and that it has given up its headquarters and other assets to “comply with its legal and contractual obligations with customers” .”

How do you see Bluebenx changing its interpretation of its liquidity issues? Let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist in Venezuela. He describes himself being late to the game, entering the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency craze on a social level, he offers a different perspective on the success of cryptocurrencies and how it can help the unbanked and underserved.

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