Over $60 Million Emptied from NiceHash Wallet by Hackers

Reading Time: 2 minutes

Cryptocurrency mining marketplace NiceHash on Wednesday was hacked and its wallet emptied of over $62 million worth of Bitcoins (4,449 BTC). In a statement posted earlier today, NiceHAsh officially halted operations and is currently carrying out investigations into how the security breach occurred. In the statement, the company said:

“Unfortunately, there has been a security breach involving Nicehash website. We are currently investigating the nature of the incident and, as a result, we are stopping all operations for the next 24 hours. Importantly, our payment system was compromised and the contents of the NiceHash Bitcoin wallet have been stolen. We are working to verify the precise number of BTC taken. Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days. In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency.”

NiceHash further added that other than the obvious probe into their own employees and internal investigations, they had gone ahead to employ the expertise of “relevant authorities and law enforcement agencies” to assist in rectifying the situation as soon as possible. NiceHash also advised its users to change all their passwords with immediate effect since they are still unsure about what exactly the hackers obtained from the hack other than just the huge loot of Bitcoins.

NiceHash which was launched in 2014 allows its users to trade and sell hash power via its online marketplace by matching people with spare computing power with Bitcoin miners in need of the extra computing to create more crypto coins. Users can, therefore, reap the benefits of Bitcoin mining without having to invest fortunes in purchasing equipment or operating them. This is perhaps the biggest cloud mining hack of all time and considering how events play out after this, it is quite apparent that it will affect the cloud mining market from here on out. Already, questions are being raised about the essence of using cloud mining services instead of buying and operating machines personally, the latter being considered to be the safer option despite its cumbersome nature.

Josh Andrews

Author: Josh Andrews

As an avid follower of the crypto world from the beginning since early 2010, Josh has experienced and covered every drop, turn and rise of Bitcoin from the first halving to the countless attempts of regulation. Over the years Josh has developed a keen interest in the different applications and uses of Bitcoin and its current movement within the gambling industry. It's safe to say very few can match Josh's passion for the growth and development of Bitcoin.

Leave a Reply

Your email address will not be published. Required fields are marked *