March 18, 2018

Millions potentially lost after a bitcoin mining marketplace was hacked

07 December 2017, 12:24 | Hattie Nash

Millions potentially lost after a bitcoin mining marketplace was hacked

Millions potentially lost after a bitcoin mining marketplace was hacked

NiceHash, the marketplace for cloud-based mining of cryptocurrencies, said hackers breached its systems and stole an unknown amount of bitcoin from its virtual wallet.

NiceHash is a service that allows users to register and rent or buy cryptocurrency mining/hashing power. This way, users can benefit from bitcoin mining without purchasing or operating the equipment themselves. Users mention that their wallets have been emptied and the bitcoins are now in a wallet that received 4736 bitcoins on Wednesday, currently, that entails a total value of 51 million euros, roughly 56 million Dollars.

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The hack appears to have affected the money stored locally, on the NiceHash network.

The announcement follows an hours-long outage and reports from a multitude of users that their NiceHash-associated wallets had been emptied. The venture's main webpage showed a "maintenance" error message, linking to its social media accounts. And if you used Nicehash, you should also change any passwords that were the same as your Nicehash credentials. Below is NiceHash's full statement.

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That led to NiceHash admitting via a release that "there has been a security breach involving NiceHash website".

In a post on its Facebook page late last night, NiceHash said it was investigating the nature of the incident and would stop all operations for 24 hours. While the company did not reveal the exact amount lost, users on Reddit spent the better part of today anxious 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.

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The company stated that, in addition to an internal investigation, they had contacted the "relevant authorities and law enforcement" and that they are working to "rectify the matter in the coming days". We are fully committed to restoring the NiceHash service with the highest security measures at the earliest opportunity.

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