Tether CEO denies Bitfinex data breach by FSociety

Bitfinex Chief Technology Officer Paolo Ardoino has unequivocally refuted recent claims of data breaches involving the cryptocurrency exchange, calling them “bogus.” Ardoino confirmed that after the rumors surfaced, an internal review was conducted to verify the integrity of Bitfinex’s user database.

“As we said on Saturday, Bitfinex’s user database was not compromised. We spent the weekend reviewing all internal data to ensure we did not leave anything behind. “We concluded that this claim is false,” he said.

The false report stemmed from a tweet by Shinoji Research’s Alice on April 26, who claimed there had been a massive data breach based on claims from a hacker group called FSociety. The now-deleted tweet leaked 2.5 terabytes of information and the personal information of 400,000 users.

The information was picked up by Walter Bloomberg, a breaking news account with more than 732,000 followers, who shared the report citing Synoji Research. However, Alice later admitted that the tweet was premature and recanted her suspicions. “I deleted the original BFX [Bitfinex] Hack the post because you can’t edit it,” she said. According to her, a group known as “Flocker” handpicked a list of her Bitfinex logins from other breaches and presented them as part of a large ransom demand.

Ardoino reiterated that Bitfinex’s user database remains secure and that the alleged hackers posted a list of emails and passwords stolen in an unrelated breach. “Unfortunately, many users use the same email/password for many services, including crypto exchanges,” Ardoino pointed out.

FSociety, a hacking group modeled after the fictional group from the TV show mr robotclaimed on April 26th on its dark web page that it had successfully hacked multiple targets, including Rutgers University, consulting firm SBC Global, and cryptocurrency exchange Coinmama, which appears to be a misspelling of Coinmama.

The group also claimed to have hacked Binance on the same day. However, none of the organizations allegedly affected by the hack have acknowledged the data breach or confirmed payment of the ransom. Paolo Ardoino, Bitfinex’s chief technology officer, said Bitfinex had not received any direct communication from FSociety regarding the data breach.

Ardoino, who is also CEO of Tether, shared a message from a security researcher suggesting that FSociety may be using the alleged hack to promote its own ransomware tools. The group sells access to these tools through a subscription model and receives a commission from the stolen profits.

“If they really hacked Bitfinex, do they really need to sell things for $299?” Ardoino said, questioning the group’s claims.

Bitfinex was infamously hacked in 2016, resulting in the loss of large sums of money. Two people, including so-called “crypto rapper” Razulkan, have pleaded guilty to money laundering charges related to the hack and forfeited more than 95,000 Bitcoin to the government.

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