Its a cool concept, but I'm sorry, I call BS.
I have looked at the code that handles hashing, salting and encrypting passwords before they are placed into the block chain and I can say with 99.5% certainty that you did not accomplish the hack you claim to have.
In theory it is possible, but the computational complexity of uncovering even 1 of the passwords from the blockchain would be more difficult that mining the largest amount held by any user on the block chain.
Sorry to hurt your feelings and call you out, but if you are to fool this community you are going to need to prove that you a. have the knowledge required to mount such a large scale offline attack, and b. you would have mentioned the actual difficulty of doing so.
They didn't claim to crack any hashing algorithm. A dictionary attack simply goes through a dictionary of possible passwords and tries each one until it finds a matching hash. Might want to reconsider that 0.5% chance.