Bitfinex’s chief technology officer, Paolo Ardoino, is dispelling rumors that the crypto exchange fell victim to a database exploit in the previous month. Ardoino, who also holds the position of Tether’s chief executive, took to the social media platform X to assert that the alleged breach was fake and user funds remain secure. After conducting a thorough analysis of the exchange’s systems, Ardoino found no evidence of a breach and suggests that security researchers may have prematurely sensationalized the supposed exploit.

Responding to the panic surrounding the potential database breach, Ardoino explains that the alleged hackers posted two mega links with sample data containing 22,500 records of email and passwords. However, he emphasizes that Bitfinex does not store plaintext passwords or two-factor authentication secrets in clear text. Furthermore, only 5,000 of the 22,500 emails matched with Bitfinex users, which is significantly lower than expected if the data had originated from their database. Additionally, Ardoino notes that the hackers did not attempt to contact Bitfinex and only made their claim public on April 25th, giving the exchange seven days to respond. However, Bitfinex only became aware of the claim on May 3rd, and no ransom request was received through the bug bounty program, customer support tickets, emails, or social media channels. Ardoino concludes that the hackers likely compiled the database from various crypto breaches, as many users tend to reuse the same email and password combinations across multiple platforms.

Ardoino commends an unnamed cybersecurity expert who carefully examined the details of the event rather than succumbing to panic. According to the expert, the alleged data breach was essentially a ploy to advertise a tool being sold by the hackers for a few hundred dollars. The expert believes that by publicizing successful hacks on well-known companies and universities, the hackers aim to demonstrate the effectiveness of their tool and entice others to purchase it, thereby enabling them to exploit more companies and make substantial profits. Ardoino suggests that the circulating claims are merely clickbait intended to lend credibility to the tool and deceive other scammers.

In conclusion, despite the initial concerns surrounding a potential database breach, Bitfinex’s CTO asserts that the claims are baseless, and user funds remain secure. Ardoino urges investors to exercise caution and conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl, where this article is originally published, does not provide investment advice and recommends individuals to be responsible for their own transfers and trades.