P2P Bitcoin, Ethereum Exchange Paxful Denies Data Leakage, Confirms User Data, And Funds Stay Safe Fund
A new post too Broadcast forum, a marketplace for buying and selling stolen data, has claimed to have the personal information of millions of users from Paxful, a leading peer-to-peer exchange for Bitcoin (BTC) and Ethereum (ETH). However, Paxful’s management stated that the allegations are false as not all of their users ‘private information has been leaked and users’ funds are also safe.
A Paxful representative found that no customer data was leaked or compromised. Paxful also confirmed that it is carefully investigating whether some of its employees’ data could be compromised by the incident.
Someone with the username “mafufi” reportedly posted the allegedly fake listing around 2 a.m. EST on April 9, 2021 while demanding 1 bitcoin or BTC (for information) which is worth around $ 60,000 at current prices. The villain claims to have a database containing the first name, last name, date of birth, gender, address, phone number, email, and passwords of around 4.8 million Paxful users and workers.
A sample of the data (most likely falsified) was published in the list of the raid forum. It reportedly contains the official email addresses of Paxful.com or various other vendors that have Paxful as part of their handles.
Paxful’s management discovered that the data was illegally acquired from a third party that the P2P exchange had previously used (but Paxful claims to no longer use the service). The P2P crypto exchange confirmed that the contract with the provider was terminated in September last year.
Ray Youssef, CEO of Paxful, has also addressed these issues.
“1 BTC for millions of users? We get this leak spam all the time. Always fake. No user data leaked. However, it is still confirmed if some employee data has been leaked from the third-party payroll page. Stay tuned. All identities are secure! “
For full transparency. Here is further evidence that the supposed “leak” was a scam. The forum poster is a proven scam and the DB structure it has is not ours. Paxful is safe. Funds and all ID KYC are indeed Safu! pic.twitter.com/knkzph5RNK
– Ray Youssef (@raypaxful) April 10, 2021
As described in February 2021, Paxful and LocalBitcoins P2P bitcoin exchanges reported steady growth in global activity, including the Asian markets.
According to a press release shared with CI, Indian crypto exchange BitBns partnered with Paxful earlier this year. Paxful allows users to deposit Bitcoin, Ethereum and Stablecoin Tether (USDT) to make transactions through the Paxful marketplace. Millions of users worldwide now use over 300 payment methods offered by the platform to make secure transactions.
BitBns claimed in February that it plans to roll out its services globally with the support of Paxful. Paxful is currently used by consumers and businesses in the UK, China, Australia, Canada, India, Japan, Mexico, Brazil, Russia and many other countries.
As mentioned in the update, the proposed partnership aims to help people from the supported countries by introducing the fiat deposit feature, where one can buy cryptocurrency in exchange for fiat [customer] Deposits with BitBns. “