Bitfinex CTO Debunks Rumors Of User Data Breach

In a new turn of events, Bitfinex Chief Technical Officer (CTO) Paolo Ardoino has rebuffed claims of a suspected users' data breach speculated to have occurred on the exchange. 

Taking to X, the CTO called for calm, assuring users of the trading platform's commitment to ensuring that their funds and personal information are safe with the exchange. 

Part of his tweet read thus, "We are performing deep analysis of our systems and no breach was found currently. Also, the KYC platform has heavy rate limiting that would disallow downloading in bulk."

Paolo Cites Salient Instances To Back Up His Assertion 

Per Paolo's tweet, several aspects of the claimed data breach do not seem to align with Bitfinex's mode of operations, especially its manner of handling users' information, which makes it difficult for third parties to access, considering that the exchange does not store plain text passwords, not 2FA secrets in clear text. 

The CTO noted that, out of the over 22k records and emails, only 5k corresponded with Bitfinex's customers' information. "If that was part of our database, we would expect 100% matching," Paolo had asserted. 

Furthermore, the CTO stated that the perceived hackers never contacted the trading platform despite releasing a post dated April 25th, notifying Bitfinex to contact them within seven days. According to Paolo, the exchange never knew about the publication until two days ago. 

Paolo argued that if the acclaimed cyber criminals had breached customers' information as they claimed to have done, they should have contacted the exchange via its official Twitter handle, email, bug bounty, customer, customer support ticket, etc, requesting a ransom.

https://twitter.com/paoloardoino/status/1786751936760312050?s=19

Possible Sources Of Leaked Customers’ Information 

According to the CTO, following investigations at Bitfinex, the trading platform discovered that the databases in circulation were products of previous crypto breaches, as most crypto users always tend to use similar emails or passwords across several sites. 

While Bitfinex's alleged customers’ information breach might have turned out to be a bluff, it does not eschew the fact that the occurrence tends to be on the rise, underscoring the need for financial firms to tighten up their security protocols. 

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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