Cryptocurrency Miner NiceHash Hacked - $62 Million in Bitcoins Gone

Cryptocurrency website Nice Hash said on Wednesday it has been hacked with an unconfirmed number of Bitcoins it held stolen

Cryptocurrency website Nice Hash said on Wednesday it has been hacked with an unconfirmed number of Bitcoins it held stolen

Users can rent their own mining equipment (cloud computing servers) or they can rent mining equipment (cloud computing servers) from others, splitting profits.

Although NiceHash has not confirmed the number of bitcoins stolen, NiceHash users have circulated a wallet address that suggests that 4,736.42 BTC - worth more than $62 million at the current exchange rate - was drained from the company's hot wallet.

Users can send earned currency in an external wallet, or they can store it in local "secure and insured BitGo Bitcoin deposit wallets" (as described on the NiceHash homepage). 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. And if you used Nicehash, you should also change any passwords that were the same as your Nicehash credentials.

While the NiceHash operators seem honest with their statement, those words ring hollow for users that lost their accumulated BTC.

While NiceHash originally claimed to be "under maintenance" during the outages, the company admitted that it had suffered a security breach involving the NiceHash website that resulted in loss of funds. The company has paused operations for 24 hours while it figures out exactly how much was swiped and how it was taken.

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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", the company wrote.

The company added that it was "fully committed to restoring the NiceHash service with the highest security measures at the earliest opportunity", but having experienced such a significant blow, how it will manage to return to trading without the ability to provide funds to those using its service is not clear at this point.

We would not exist without our devoted buyers and miners all around the globe. "We will endeavour to update you at regular intervals".

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.

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