Cryptomining Marketplace NiceHash Targeted By Hackers This Week

Cryptomining Marketplace NiceHash Targeted By Hackers This Week

The company saw the theft of its entire Bitcoin wallet, totaling to an estimated $67 million USD.

After a substantial hack, the entire Bitcoin funds and virtual payment methods of cryptomining marketplace giant NiceHash were completely compromised. The firm made a statement declaring that it will stop all activity for a day in order to investigate the situation.

On Wednesday, December 6th, NiceHash explained the state of affairs, declaring that they are looking into the exact amount of Bitcoins that were stolen. They expressed serious concern with regard to the issue, reporting that they have taken up the situation with governmental and cybersecurity authorities with which they are urgently cooperating in order to resolve it as swiftly as possible.

As of yet, NiceHash has made no approximation about how many Bitcoins were syphoned from their accounts, but, according to Coindesk, one of the firm’s clients posted a Bitcoin address on Reddit, pointing towards around 4,736 BTC (at current exchange rates, this would total $67mil USD or £50mil GBP).

In their statement, NiceHash urged users to modify their online credentials prophylactically, expressing their empathy with their clients’ plight and urging patience while their investigative measures run their course. The company also made a sincere apology and promised it has dedicated all available resources to finding a solution swiftly.

The cryptomining marketplace’s business model gives clients the option to sell their surplus processing power for the complex blockchain maths needed to build Bitcoin and other forms of cryptocurrency. NiceHash also permits its customers to acquire additional processing power for a fee from others. The common technique employed by NiceHash users is mining other cryptocurrencies and exchanging them in Bitcoin.

On Wednesday, the firm tweeted two informative messages to its customers, explaining that their servers would be out of operation for routine maintenance procedures. They later revealed that they had, in fact, been breached. On the NiceHash website, a notice regarding the hack is still displayed.

On the back of the wild increase in mainstream popularity and value of cryptocurrencies and cryptomining, more than one marketplace offer services in this area has been previously attacked by cybercriminals. In the month of July, sums totaling to tens of billions USD were stolen from companies such as Parity Technologies, CoinDash, Veritaseum, and Bithub. This August, $500k worth of USD was stolen in Bitcoin from Enigma, while in November, $30mil USD in tokens were stolen from Tether.