Plutus Responds to Hacking Allegations, Denies Security Breach

Plutus Addresses Hacking Allegations Amid Database Leak Reports

Crypto finance app Plutus, founded in 2015, has responded to reports of a hacking attack, vehemently denying claims of a security breach. The controversy arose after an Israeli intelligence firm, Sixgill, alleged that hackers had been sharing sensitive data from the app across multiple platforms since earlier this week.

In a statement to Cointelegraph, Plutus reassured users about the integrity of its systems and the security of their assets. Despite the allegations, the company maintains that it has found no evidence to support claims of unauthorized access or a successful attack.

Plutus Reassures Customers: No Risk to Funds

Amid growing concerns, Plutus released a comprehensive statement addressing the allegations:
“We have investigated several possible attack vectors and not found any evidence of hacking. We want to reassure our customers that there is no risk of losing either their fiat or crypto balances. Our services are non-custodial by design, which removes the possibility of company hacks having any impact on customer assets. So far, we have not found any evidence to suggest a successful hacking attempt.”

Plutus emphasized its non-custodial service model, which ensures that customer funds—both fiat and cryptocurrency—are not held directly by the company. This design minimizes the impact of potential company-level breaches, offering an added layer of security for users.

Sixgill Claims Database Leak to Over 1,200 Websites

The controversy began when Sixgill, an Israel-based intelligence firm, reported that hackers had uploaded critical information from Plutus to over 1,200 websites. According to the firm, the data was protected using bcrypt, a hashing algorithm often used for password security.

Despite these alarming claims, Sixgill did not provide additional information when contacted by Cointelegraph, leaving the situation unclear.

Plutus’ Recent Initiatives: Rewards Program and Security Measures

Plutus has been actively engaging its user base with initiatives like offering rewards for purchases made using its debit card at major retailers, including Nike. This move aims to boost user activity and promote the platform’s services.

In light of the hacking allegations, Plutus reaffirmed its commitment to user security. While the claims remain unverified, the company’s swift response reflects its proactive approach to maintaining trust within its community.

Why Non-Custodial Services Are Critical for Security

Plutus’ non-custodial design has drawn attention as a key factor in mitigating risks associated with company-level hacks. Unlike custodial services, where user funds are stored within company-controlled wallets, non-custodial platforms ensure users retain full control of their assets.

This model significantly reduces the impact of potential breaches, as hackers cannot access a centralized repository of funds. It also aligns with the decentralized ethos of cryptocurrency, empowering users with greater autonomy over their holdings.

Conclusion: Plutus Denies Hacking Claims, Focuses on Security

As reports of hacking allegations swirl, Plutus has taken a firm stance to deny any compromise of its systems. Backed by a robust non-custodial framework, the crypto app ensures the safety of its users’ assets, even as the industry grapples with increasing threats from cyberattacks.

While the claims from Sixgill remain unsubstantiated, the incident underscores the importance of vigilance in the rapidly evolving world of cryptocurrency. Users must continue to prioritize security, from using strong passwords to enabling multi-factor authentication, to safeguard their digital assets.

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