Nicehash Hacked To Tune of $66 Million Worth Of Bitcoin

Subject: General Tech | December 6, 2017 - 09:59 PM |
Tagged: nicehash, mining, hack, Cyber Security, bitcoin

In a recent press release cryptocurreny mining market Nicehash revealed that its payment service was hacked and its BTC payment wallet was emptied. While the company did not reveal the exact amount lost, users on Reddit spent the better part of today worried as the service was initially "under maintenance" for 12 hours amidst suspicious transactions on the blockchain that saw 4,736.42 BTC taken from Nicehash and their Nicehash internal wallets reporting zero balances. The company is currently investigating the precise amount stolen, though estimates around the web put it north of $66 million USD worth of the popular cryptocurrency (at time of writing 1 BTC = ~$13970.50).

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Image courtesy fdecomite via Flickr.

Users that mined to an external wallet for an additional fee are out unpaid balances less than 0.01 BTC, but sadly users that mined to an internal wallet have potentially losts hundreds or thousands of mined bitcoin. Also, purchasers of the Nicehash mining service may have lost the BTC that they paid into the service for alt coin hashing power.

"We are fully committed to restoring the NiceHash service with the highest security measures at the earliest opportunity.

We would not exist without our devoted buyers and miners all around the globe. We understand that you will have a lot of questions, and we ask for patience and understanding while we investigate the causes and find the appropriate solutions for the future of the service. We will endeavour to update you at regular intervals."

Nicehash is further recommending that users of its internal wallets change all of their online passwords (especially any that were similar to the one they used on the site) as a precaution.

The full press release is available here.

In all, it is a devastating hack that is another in a series of high profile crypto currency heists that have traditionally left users out money and the company destroyed. Nicehash has indicated that they have reached out to and are cooperating with the relevant authorities, but unless they are able to find the individual(s) responsible and recover the massive amount of bitcoin it is not looking good.

I hope that the bitcoin is able to be recovered or at least that Nicehash is able to do the right think and compensate its users from its own funds.

This high-profile attack further illustrates the need to use safe bitcoin storage practices and to always hold your own private key in an offline wallet (hardware or paper or at least encrypted software wallet you control at a minimum) for long term storage of funds. Your crypto currency is only truly yours when you alone control the private key(s) and you should only transfer and keep coins on other servers (e.g. exchanges) for as long as it takes to transfer them to your bank or as short a time as possible when trading.

What are your thoughts on this? Did you have money in a Nicehash wallet or unpaid mining balance? Do you plan to venture forth and mine on your own?

Source: Nicehash

December 6, 2017 | 11:10 PM - Posted by throAU (not verified)

I had an outstanding balance.

I think i'm going to mine monero solo.

December 7, 2017 | 12:12 PM - Posted by Hikingmike

You say Monero, I say Dinero...
Canyonero?

December 6, 2017 | 11:38 PM - Posted by Dworksz01 (not verified)

Had .065btc on NH wallet. Looking forward to retrieving it back. So much time and money spent to earn it.

December 6, 2017 | 11:41 PM - Posted by BleedingEdgeYes...

Glad you brought it up.

December 7, 2017 | 01:42 AM - Posted by FallenBytes

Too bad by the time they are able to anonymously sell said bitcoin for real currency, it might be worth far less.

December 7, 2017 | 02:31 AM - Posted by Tired of Hearing about Crypto currency (not verified)

Bitcoin amd the rest need to go ahead and burst, crash, burn, and die for good. I want to buy a gpu at MSRP!

December 7, 2017 | 03:21 AM - Posted by throAU (not verified)

Sounds like a lot of waah.

The RX480 i bought for gaming last year has paid for itself 5x over with 1 month (june) spent mining ether with it.

You can either whine about the situation, or leverage to your advantage.

December 7, 2017 | 06:26 AM - Posted by willmore

No mention of how PCPER had been recommending this service? Classy.

December 7, 2017 | 09:47 AM - Posted by Kareha

Because they knew in advance Nicehash were going to be hacked, fucking cretin.

December 7, 2017 | 12:42 PM - Posted by willmore

Thanks, I'm sure you did your best. Try upping your reading comprehension next time.

December 7, 2017 | 10:09 AM - Posted by WhiteZero

Glad I recently switched off of NiceHash back to NanoPool Eth. Whew!

December 7, 2017 | 12:41 PM - Posted by willmore

Not sure I'm comfortable with a pool who's web site pulls scripts from over a half dozen Russian web sites.

December 7, 2017 | 11:48 AM - Posted by mAxius

i am going to leave this here all affected by this hack take a moment and click and comprehend https://twitter.com/MeanHash/status/938511189251907589

December 7, 2017 | 02:08 PM - Posted by domnatr6

Lost about $100. Given the amount of money I've made using this service I'm not at all concerned personally. Cryptocurrency is high risk.

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