Only the employee records of the peer-to-peer crypto exchange were leaked, according to the company.

Bitcoin exchange that works on a peer-to-peer basis Despite allegations to the contrary made by someone trying to sell the allegedly stolen data, Paxful claims that its user data has not been leaked.

User Records Aren’t Stolen Data

A member of the stolen data marketplace RaidForums recently listed a database containing data on 4.8 million Paxful customers and employees for sale. Paxful users’ names, birth dates, and contact details will be included in this data.

The data for sale, however, does not seem to exist. On Twitter, Paxful’s CEO, Ray Youssef, confirmed that all funds and identities are safe. He went on to say that no user data was ever leaked, and no security violation was ever perpetrated against our users. Ignore the rumor mill.

He said that the data that had been leaked was actually “old employee records from a payroll site that we no longer use.”

It appears that Youssef’s story is right. Potential buyers of the allegedly stolen data were reportedly reluctant to pay because Paxful had not declared a breach, according to Decrypt. The sale was also allegedly flagged as suspicious by RaidForums administrators.

Is There Any Information That Has Been Stolen?

Despite the fact that Paxful was not targeted, crypto companies are often the victims of data theft. KeepChange and BuyUCoin also experienced data breaches in 2021. In previous years, user data was exposed on Ledger, Poloniex, BitMEX, and BTC Markets.

Real or imagined data leaks may cause some users to switch to decentralized exchanges that do not store user data.

Even so, considering that non-crypto websites can still be hacked, this isn’t enough to solve the issue. Since 2004, over 350 businesses have had customer data breaches, according to Wikipedia, including major tech companies including Yahoo and Facebook.


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