I recently received one of those generic "we hacked your computer" emails mentioning write.com password (unique for the site), so there is reason to believe the beach is global.
Notifying all users will be prudent.
I would be interested to know what security measures have been implemented. What algorithm is used to encrypt the passwords? Are they individually salted? How did the attacker get access to user details and what has been done to plug that hole?
With all due respect, hearing that up until several moments ago passwords were stored in plaintext is not reassuring.
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