This week the Houseparty app was accused of being a nefarious app.

Users took to social media to both warn others and accuse Houseparty of compromising other services such as banking apps and Spotify.

Naturally, the developers of the app refuted these claims while also providing clarity but it appears the situation has escalated.

Houseparty said on Tuesday that it is investigating reports that the rumours were spread as part of a paid commercial smear campaign.

As such, Houseparty has issued a bounty.

The first person to provide proof that the rumours are part of a smear campaign will be given $1 million.

Houseparty reiterated to the BBC that it has found no evidence of compromises linked to other apps.

“We’ve found no evidence to suggest a link between Houseparty and the compromises of other unrelated accounts,” an Epic Games spokesperson told the BBC.

What is seeming more likely than Houseparty being compromised and a smear campaign is the fact that people reuse credentials on multiple websites.

As The Register points out, one person claiming that Houseparty compromised its accounts also said they reuse usernames and passwords across multiple websites.

It’s more likely that a person’s account was compromised because they reused a password across multiple sites.

That having been said, we’re interested to see how this situation gets resolved and whether this is indeed a smear campaign aimed at Houseparty.

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.