I have no idea if this is the same provider that the original poster is referring to. But I have experienced this from the provider referenced here.
http://www.dslreports.com/forum/r27660966-DynDNS-Hacked-
At that time, I found this link when I started getting phishing emails at unique addresses created for these accounts. I have a pro and some free accounts... all the same behavior. Then created new addresses and starting getting at those to. And the same response from the company. Absolutely nothing. Their twitter posts from about the same time frame were the only acknowledgment that I ever saw, and those appear to have disappeared.
What did I do about it? I renewed my pro account because just about EVERY router uses them for their built in dynamic dns client. From the beginning I've always used unique passwords besides the unique email accounts. So if passwords are compromised, either once or continuing, in addition to the email list, the only thing they can do to me is mess up my dns resolution - which I know is a big deal - but something I have not yet observed.
But isn't it obvious why they'll pretend there is no problem? To publicly acknowledge this in the geek community would destroy their business.