normal developers will encrypt or hash passwords. a lot of websites don't do that. not because they want to make bad things with it but only they are not prepared for vulnerabilities on their site.
but in this case there was a plan behind that. i'm sure.
I have a website. It has 800 users but still, their passwords are hashed. You're dealing with cryptocurrencies and you don't encrypt the passwords of your users? You're a scammer and you want to use those passwords for other purposes, obviously.