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It appears that GoDaddy was storing sFTP credentials either as plaintext, or in a format that could be reversed into plaintext. They did this rather than using a salted hash, or a public key, both of which are considered industry best practices for sFTP. This allowed an attacker direct access to password credentials without the need to crack them.
According to their SEC filing: “For active customers, sFTP and database usernames and passwords were exposed.

https://www.wordfence.com/blog/2021/11/godaddy-breach-plaintext-passwords/
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