Paxful CEO Denied Data Breach Rumors On His BTC Exchange

Ray Youssef, the Paxful CEO denied data breach rumors on the exchange after an alleged stolen database of the user data started making rounds on the online marketplace Raid Forums so let’s read more in our latest cryptocurrency news today.

The seller on Reid Forums which is an online market for stolen data was selling a database that had personal info of about 4.8 million Paxful customers and staff at the P2P BTC exchange. The seller under the handle “mafufi” claims that there are first and last names, email addresses, passwords of Paxful clients as well home addresses and birth dates. Mafufi posted a sample of employee data and asked for 1 BTC for the entire database.

Ray Youssef, the Paxful CEO denied that there was ever a data leak from the platform and said:

“No user data was leaked, no breach was ever made of our users! The data they had was old employee records from a payroll site we no longer use.”

Youssef’s statement backed up some of the skepticism that mafufi encountered when he tried to sell the data but other users pointed out that Paxful hadn’t reported being breached and that only 1 BTC seems very low for a huge leak. One site administer interjected with DWC in order to “deal with caution.”

All funds and Identites are Safe @paxful No user data was leaked, no breach was ever made of our users! Ignore the FUD ! long live #bitcoin The data they had was old employee records from a payroll site we no longer use. #badguysdontwin

— Ray Youssef (@raypaxful) April 9, 2021

The claim caused a storm on Twitter with some users worried that this was proof that the KYC and AML regulations that require exchanges to collect customer data are leaving the customer info exposed. One Raid Forums user said:

“I asked seller to parse 1 user info from database, he failed. Clearly a scam.”

Also as recently reported, Peer-to-peer crypto marketplace Paxful defended against 220,000 bot attacks as per the latest reports from the platform, in less than two months. Peer-to-peer crypto marketplace Paxful revealed that it fended off about 220,000 requests from web-bots which are typically aimed at stealing victim’s money via account takeover or money transfers. Paxful used Group-IB’s online fraud prevention platform Secure Portal to tackle the bot issue.
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The volume of attacks outlined the fact that crypto companies remain a tempting target for the attackers as in the past year, hackers stole about $5.4 million from Eterbase and more than $200 million from KuCoin