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Re:Scribd hacked – emails and hashed passwords leaked by zwily on Thursday April 04, 2013 @06:45PM (#5495777)
The migration can be transparent, since the app has your plaintext password when you log in.

Alternatively, stored passwords can be upgraded by using the new scheme on the hold ashed password, and storing that that's how the password should be checked in the future.

Since not everyone was migrated, I'm assuming they went the first way.

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