Crypto: BitFinex narrowly escapes a major cyber attack, the hackers were bluffing!

The 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 largely exaggerated. BitFinex’s Chief Technical Officer, Paolo Ardoino, provided crucial clarifications on the situation.

FSOCIETY Hackers Spread Panic

On April 25, the famous hacker group FSOCIETY, named after the Mr Robot series, declared on the dark web that they had compromised over 400,000 BitFinex accounts and exfiltrated 2.5 TB of user data. They threatened 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 disclosed passwords, triggering a wave of two-factor authentication (2FA) notifications and prompting many users to urgently change their credentials.

BitFinex Questions the Hacking

In the midst of the storm, Paolo Ardoino, CTO of BitFinex and CEO of Tether, stepped up to calm the situation. He assures that after thorough analysis, no breach was detected in the BitFinex systems.

According to him, the file disseminated by FSOCIETY contained 22,500 email/password combinations, of which only 5,000 were linked to BitFinex users. And he notes that the platform does not store passwords in plaintext.

Ardoino suggests that the data actually came from other leaks such as the one from CoinMarketCap. Shinoji Research has indeed established that many accounts in the file appeared in databases of sites like HaveIBeenPwned, which list compromised accounts.

The CTO also highlights that the hackers never asked for a ransom from BitFinex. He rather sees this attack as an attempt by FSOCIETY to promote their ransomware tool. “If they really had hacked BitFinex, would they need to sell products for $299?” he wonders.

In summary, while this episode has 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, it is a reminder of the importance of remaining vigilant and following the official communications of the platforms in case of a presumed incident. Cryptocurrency hacks have overall dropped by 67% in April 2024, but the threat persists.