Sun 05 May 2024 ▪
3
min reading ▪ by
Fenelon L.
Cryptocurrency exchange BitFinex has been the target of an alleged massive cyberattack by the infamous hacker group FSOCIETY. However, after a week of panic among users, the threat turned out to be greatly exaggerated. The technical director of BitFinex, Paolo Ardoino, provided some life-saving clarification on the situation.
FSOCIETY hackers sow panic
On April 25, the famous hacker group FSOCIETY, named after the Mr Robot series, declared on the dark web that it had compromised more than 400,000 BitFinex accounts and exfiltrated 2.5 TB of user data. They made threats to reveal this confidential data, including KYC (Know Your Customer) information, if BitFinex did not meet their demands within 7 days.
This statement caused panic among BitFinex users. Cybersecurity experts verified the authenticity of the leak by testing the leaked passwords, triggering a wave of two-factor authentication (2FA) notifications and prompting many users to urgently change their credentials.
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BitFinex questions hack
At the heart of the turmoil, Paolo Ardoino, CTO of BitFinex and CEO of Tether, stepped up to calm things down. He ensures that after in-depth analysis, no breach was detected on BitFinex’s systems.
According to him, the file released by FSOCIETY contained 22,500 email/password combinations, of which only 5,000 linked to BitFinex users. And he specifies that the platform does not store passwords in clear text.
Ardoino suggests that the data actually comes from other leaks like that of CoinMarketCap. Shinoji Research has in fact established that many accounts in the file appeared in the database of sites like HaveIBeenPwned which list compromised accounts.
The CTO also emphasizes that the hackers never demanded a ransom from BitFinex. Rather, he sees this attack as an attempt by FSOCIETY to promote its ransomware tool. » If they really hacked BitFinex, would they need to sell $299 products? » he asks.
In short, if this episode revived the trauma of the BitFinex hack in 2016 where 119,756 bitcoins were stolen, it seems that the platform was not compromised this time. However, he reiterates the importance of remaining vigilant and following official communications from platforms in the event of a suspected incident. Crypto hacks overall fell by 67% in April 2024, but the threat persists.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
