Largest Crypto-Mining Exchange Confirms It Was Hacked, $62 Million In Bitcoin Stolen

Tyler Durden's picture

Update: as @MillionsBitcoin points out....

... the total amount of bitcoins stolen from Nice Hash is 4736, or just over $62 million, and they have ended up at the following address:

* * *

Earlier

As Bitcoin explodes higher on what now appears to be constant demand out of South Korea, there were unconfirmed (at least until recently) reports that Nice Hash, the largest crypto-mining marketplace, has been hacked with over 4,000 bitcoins worth over $50 million stolen.

Visits to the website over the past 13 hours were greeted with the following maintenance notice.

According to TweakTown, there are some posts by people saying that NiceHash transferred all of the BTC sitting in miners' wallets into a single wallet before NH fully went down.

If NiceHash were hacked, then it makes sense that the hacker pushed all of the Bitcoin into a single wallet and then transferred it to their own wallet. There's no way of getting it back if that's the case, and if that is indeed the case, there's no way NiceHash can restore money to miners' wallets. If we're talking about $50 million or more, it's going to hurt, bad.  

Earlier, WklTribune reported that they've been in contact with NiceHash CEO Andrej Nabergoj, who said that NiceHash is "assessing the situation and working with the authorities. We'll have a public statement shortly".

And then, moments ago NiceCash confirming there was a security breach:

From the release:

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.

 

We are fully committed to restoring the NiceHash service with the highest security measures at the earliest opportunity.

 

We would not exist without our devoted buyers and miners all around the globe. We understand that you will have a lot of questions, and we ask for patience and understanding while we investigate the causes and find the appropriate solutions for the future of the service. We will endeavour to update you at regular intervals.

And the best part:

While the full scope of what happened is not yet known, we recommend, as a precaution, that you change your online passwords. 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.

One wonders: if one has just had millions in bitcoin stolen, will changing the password really help?

So far Bitcoin has taken the massive hack well, and continues to rise, approaching $13,500.

The news could be negative - at least in the short-term - for companies catering to "home miners" such as Nvidia, the biggest beneficiary of the bitcoin mining euphoria.

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Raffie's picture

same size truck to take credit card that has a limit of $50m....

Cynicles II's picture

"What size truck does one need to haul off $50M in BTC?"

Any Fiat will suffice.

FiatFapper's picture

Will my sticky fiat suffice?

wren's picture

More than all of them, or none. How many trucks does your government need to take all your gold? <1?

Justin Case's picture

_____________________
|                              |\
|      GOLD                  |[" " '| " "\__,
|_____________________||___|__|__|);
|(@)(@)" " " " ******|(@)(@)*[__]*(@)

vealparm's picture

What size truck?

Don't need a truck, a "Smart" car will work.

BarkingCat's picture

They would need a submarine.  I had a terrible boating accident in the open ocean. 

SILVERGEDDON's picture

How do you steal - nothing ? 

Sure is easy to replace though.

Just ask the FED for the magic printing beans, and watch them grow................... 

GodSpeed_00's picture

Obviously it's "something". Something you can't understand apparently.

Dr. Dooms-a-lot's picture

Dunno but I'm pretty sure there is a new M2 in my near future.

FORD_FIESTA's picture

HAHAHAHAHAH!  GOOD!   Bitcoin is for Fags.

EddieLomax's picture

I guess the CIA just needed to cash in.

Seriously though, its gone, the idea that if it was truly beyond the control of governments might look a bit flimsy now.  If the CIA are capable of all kinds of nefarous activities then stealing a password and hacking into some bitcoin accounts would be one of the least disagreeable to most people, I doubt many government employees would blanche at doing that.

DC Beastie Boy's picture

They’ll print more Tethers and front run

Schmuck Raker's picture

No Cog, that's not possible.

That's ETH you're thinking of.

 

BTW I'd expect more thought from you. Do some homework, you're way behind others. Peace

Justin Case's picture

Can't hack bitcoin because it uses block chain technology and is anonymous, so it can't be hacked, ask Mostly the guru. This musta be fakey news.

swmnguy's picture

I don't believe they're hacking bitcoin itself.  Just as you don't have to counterfeit FRN's to steal them.

It's all the same to me.  I know exactly where my precious is, and where some shrinkwrapped FRN's are.  I can even access them in a power outage.

Bunga Bunga's picture

Bitcoin blockchain was never hacked. The weak part is the people who run the wallets.

Atlas Crapped's picture

The weak part is people ...

cheech_wizard's picture

It's what known as low hanging fruit.

The real hack will be when you wake up one morning and poof!, it's gone.

 

Identify as Ferengi's picture

So, the Disintermediation of the Blockchain allows the stolen goods to sit there, plainly seen, but unrecoverable?

King of Ruperts Land's picture

Unrecoverable by anyone other than the new owner. The new owner will have to be cautious about handling them.

blentus's picture

This has absolutely nothing to do with Bitcoin.

You are a fucking idiot.

WileyCoyote's picture

I thought the whole bitcoin advantage was that is was very hard to manipulate (by adding currency or diluting), hard to trace, and hard to steal. How does it get 'hacked'? Back to the drawing board. 

Buckaroo Banzai's picture

It's pretty straightforward to steal bitcoin, all you have to do is get physical access to a wallet, and hack its password. Of course, depending on what the password is, that can be a relatively easy task, or an extremely difficult one.

It's like robbing a bank. If the bank leaves the vault open when they leave for the night, nobody should be surprised if it's empty when you come back the next morning.

Like most big heists, this was almost certainly an inside job.

Mine Is Bigger's picture

You don't even need to access the wallet.

All you need is the private key to the wallet.

And you can transfer the entire amount to a new wallet.

Justin Case's picture

Bill Holter’s Commentary

I don’t get it. At first they told us it was “private” and that was the allure, then it turns out to be completely transparent and every single coin (don’t you just love that phrase) can be traced back to its origin…If this is the case, what’s the problem? Track the movement and find the hacker? Oh wait, they also told us it was unhackable didn’t they? So what’s the real story?

LMFAO block heads.

Buckaroo Banzai's picture

Bill Holter is a fucking retard. If he can't understand what a public ledger is, or the difference between "pseudonymous" and "anonymous", then there's no helping him.

When all those BitCoins were stolen from Mt.Gox, many of the coins were eventually tracked down to the BTC-e exchange. The authorities most likely used software like Palantir to analyze transactional relationships on the blockchain. It will take time, effort, and money to crack this case, but given that $50 million is at stake, the expense will be worth it.

That's the beauty of BitCoin. Its open ledger and pseudonymous nature means that high-dollar-transactions can't be kept private from a dedicated opponent--which is a good thing when you think about it-- but low-value transactions are going to be fairly private given the difficulty and expense involved with tracking them down.

blentus's picture

Why do you keep talking about things you don't understand?

Justin Case's picture

If I were you, I'd wish I were me.

Proofreder's picture

3787.87878787 Bitcoin

50mil / 13,200

divisional maffs easy

Mr Hankey's picture

Wow,you must be a gook.

1) good at maffs ( long division is hard 4 white trash- cant even punch it into my handy-dandy pocket calculator - it adds, subtracts,multiplies & DIVIDES!!!Oh,wait...this thingy I'm tapping on has this function...

2) not only doesn't understand snark,lacks the sense of humor necessary to dv my post.

3)shitty at ingrish-spelled proofreader.. .oh,wait....HAHAHAHAHAHAHAHA!!!!!!!!°°

tion's picture

I dunno dude, he looks more like an eclipse than a country to me.

ZH Snob's picture

this why it is VITAL to have control of your private keys.

rp2016's picture

sorry .. using your thread.

 

President Trump, hold on to your tax plan. do not make that mistake... I am writing one for you.

https://just-a-thought-from-thinair.blogspot.com/

https://just-a-thought-from-thinair.blogspot.com/2017/12/the-tax-plan.html

Gead's picture

Kind of like someone sneaking into your garden and digging up and taking all your tulip bulbs.

rbsx's picture

I can't wait for fuckers to burn when this crashes all around them.

mrtoad's picture

The stock market or Blockchain Technology??

vulcanraven's picture

If anyone saw my earlier comment posted about an old friend of mine who I never talk to anymore.... word on the street has it that his current scam artist girlfriend has convinced him to dump everything he has into Bitcoin, apparently he took a $100,000 loan from Paypal and gambled the majority of it on BTC.

 

I'm loading up on popcorn and beer as we speak, just bought a case of Goose Island Bourbon County Stout to enjoy over the fireworks show.

Gaius Frakkin&#039; Baltar's picture

I call bullshit on that.

A woman never puts that much into anything for delayed gratification or a return.

Their first instinct is to cash out and buy shit.

vulcanraven's picture

He took the same loan last year and gave her 30k to invest in her pyramid scheme... she knows damn well where her bread is buttered.