Bitfinex CTO Dismisses FSOCIETY's Claims of a Database Breach, Assures Secure Funds
Summary:
Bitfinex's CTO, Paolo Ardoino, has dismissed the allegations made by hacker group FSOCIETY about a breach into the company's database exposing 22,500 customer emails and passwords. He stated that if the claim was authentic, the hackers would have sought a ransom. Of the total leaked data, only 5,000 email and password details correlated to Bitfinex customers. The CTO assured that despite the claims, no breach has occurred and customers' funds are secure. This incident is not the first time the crypto exchange has faced data breach accusations.
Crypto exchange platform Bitfinex's CTO, Paolo Ardoino, has dismissed allegations leveled by the hacker collective FSOCIETY regarding a supposed breach into the company's database. The group had declared that they exposed a total of 22,500 customer emails and passwords. However, Ardoino asserted that the assertion was most likely a falsification in a recent online post on May 4. He explained that if the group had any genuine data, they would have demanded a ransom through Bitfinex's various contact channels, which they hadn't.
Ardoino went on to emphasize that the exchange doesn't store passwords or second-factor authentication details in unencrypted form. He further clarified that out of the total 22,500 email and password details leaked, merely 5,000 could be traced back to Bitfinex clientele. Ardoino proposes that the hackers have likely compounded data from different crypto-related data infringements.
He noted that many users unfortunately recycle their email and password credentials across diverse platforms. A security researcher's message was also relayed by Ardoino. The researcher put forth the theory that the hackers were falsely claiming to have breached Bitfinex's systems to advertise a data extraction hacking instrument. The hackers aimed to create hype by asserting they had broken into well-known companies and a university, implying that others could generate millions if they bought and used the hackers' tool.
Despite the furor, Ardoino assured Bitfinex users that a thorough investigation was underway, with zero breaches detected and all funds remaining secure.
This instance is not the first where Bitfinex has had to face data breach allegations. Back in November 2023, a minor information security incident occurred when one of its customer service representatives was hacked, leading to a string of phishing attempts on Bitfinex users. But Bitfinex reassured its users that the impact was minimal. An earlier episode in 2016 resulted in a damaging breach with 119,576 Bitcoin, valued nearly $70 million then and approximately $7.6 billion now, going missing from customers’ accounts.
Published At
5/5/2024 8:39:56 AM
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