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BlueBenx Suspends Payouts, Reports $31M Hack

Brazilian cryptocurrency investment platform BlueBenx is the latest crypto company to suspend withdrawals, citing an alleged hack that cost the company over $31 million.

The company said withdrawals could be halted for six months or more, Bitcoin.com reported on Sunday (Aug. 14).

“Last week we suffered an extremely aggressive hack in our cryptocurrency network liquidity pools, after non-stop attempts at resolution, today we started our security protocol with the immediate suspension of the operation of BlueBenx Finance products, including withdrawals, redemptions, deposits and transfers,” BlueBenx said loudly Report in an email to customers.

No details were given about the nature of the attack, but sources said the company also laid off all of its employees on the same day the hack took place. The report noted that the Brazilian Securities and Values ​​Commission was investigating the company earlier this year for allegedly offering unregistered securities in its investment portfolio.

BlueBenx did not respond to a request for comment from PYMNTS.

There have been numerous crypto companies that have frozen withdrawals and even filed for bankruptcy, spilling over the problems in the industry.

Last week, CoinFLEX announced its restructuring plans following legal troubles after halting payouts and losing money to recover from a breach of contract scandal.

Continue reading: Crypto exchange CoinFlex seeks restructuring, cuts staff, costs up to 60%

That resulted in Roger Ver, a longtime investor, failing to repay $47 million from a margin call — with the total calculated being higher. CoinFLEX may also be exploring a joint venture with another crypto company to help with the situation.

“It may be some time before we are able to recover monies owed to us in the litigation we are pursuing against this individual,” the company wrote in a blog post.

The company had spoken to Ver, who had asked them to liquidate his account but also told them that he “planned to send significant funds to the exchange to take physical delivery of the futures positions.”

However, the company said nothing came of it, eventually realizing that Ver was just waiting for a market rally, which never happened.

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