Bitcoin mining marketplace NiceHash loses tens of millions of dollars following hack

07 December, 2017, 12:55 | Author: Leticia Walters
  • $62 Million Gone? Cryptocurrency Mining Market NiceHash Hacked

"We are working to verify the precise number of BTC taken", the company said on Wednesday in a statement on its Facebook page.

Bitcoin wallets are usually a highly secure technology, but the hack may have included a sophisticated attempt to scam and steal wallet keys.

NiceHash, one of the most popular crypto-mining marketplaces, has apparently suffered a breach that resulted in the theft of the entire contents of the NiceHash Bitcoin wallet.

The announcement follows an hours-long outage and reports from a multitude of users that their NiceHash-associated wallets had been emptied.

NiceHash users typically mine altcoins in exchange for their value in Bitcoin.

Site operators said they are still working to evaluate the total number of Bitcoin funds that were stolen, but users who had earnings stolen said Bitcoin funds were rerouted to a wallet address now storing 4,736.42 Bitcoin - over $62,6 million at today's Bitcoin price ($13,450).

The site has been around since 2014 and has been offline, with a message posted that it was "under maintenance".

NiceHash said in a statement it was "investigating the nature of the incident", and that it would close down its site for a day. The amounts mined are held in trust by NiceHash with the company naturally taking its own cut of the transaction with users then being able to transfer bitcoin or other cryptocurrencies earned via the service to their own wallets. We are fully committed to restoring the NiceHash service with the highest security measures at the earliest opportunity.

ZDNet has contacted NiceHash and will update if we hear back. 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.

"We are truly sorry for any inconvenience that this may have caused and are committing every resource towards solving this issue as soon as possible", the company added.

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