Bitfinex Chief Technology Officer Paolo Ardoino has debunked recent data breach allegations surrounding the cryptocurrency exchange, confirming that the user database remains secure after an internal review.

The rumors emerged over the weekend when Alice of Shinoji Research claimed that Bitfinex had experienced a significant data breach. However, Ardoino clarified that there was no evidence of a breach after examining Bitfinex’s systems.

The allegations were based on information from a hacking group, FSociety, which later took responsibility for the supposed breach on April 26. The group claimed that personal details of 400,000 users and 2.5 Terabytes of data were compromised, but this was later proven to be false.

After investigating, Ardoino found that the data in question was not taken from Bitfinex’s servers but was instead gathered from previous unrelated breaches. This information was then misrepresented as a breach of Bitfinex, using recycled credentials to create a false alarm.

Alice of Shinoji Research has retracted the initial claim and clarified that the data involved in the incident was old and collected from various breaches by a group called Flocker. The misrepresentation was an attempt to simulate a ransom demand, exploiting fears of a major breach.

Ardoino emphasized the importance of using unique passwords for different services to enhance security, particularly on platforms dealing with sensitive financial information. Reusing passwords across multiple platforms can pose significant security risks, as demonstrated by this incident.

It is crucial for users to prioritize their online security by creating strong and unique passwords for each platform they use, especially when dealing with cryptocurrencies and financial services.

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