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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tmosley's picture

Hahaha, all crypto owners have to do is leave the country. No anal insertion required.

cpnscarlet's picture

if(BTC.character.values!=Plato.criteria.values){

     printf("It's not money");

     printf("If you don't hold it, you don't own it");

}

SuperRay's picture

That migraine ad right below the announcement had to be the best placement in history

Greendawg's picture

Lolo hundreds of times more shitcoins have been stolen than used in legitimate transactions .  This is simple fact but the uneducated pumptards will try so desperately to convince you otherwise

I_rikey_lice's picture

You are correct.

"As of today, Steam will no longer support Bitcoin as a payment method on our platform due to high fees and volatility in the value of Bitcoin.


In the past few months we've seen an increase in the volatility in the value of Bitcoin and a significant increase in the fees to process transactions on the Bitcoin network. For example, transaction fees that are charged to the customer by the Bitcoin network have skyrocketed this year, topping out at close to $20 a transaction last week (compared to roughly $0.20 when we initially enabled Bitcoin). Unfortunately, Valve has no control over the amount of the fee. These fees result in unreasonably high costs for purchasing games when paying with Bitcoin. The high transaction fees cause even greater problems when the value of Bitcoin itself drops dramatically."

https://steamcommunity.com/games/593110/announcements/detail/14640966849...

Justin Case's picture

Suppose you are an appliance dealer. You buy appliances in BitCoin and sell them at a later time in BitCoin. But because the value of BitCoin is always increasing, you may well be forced to sell your appliances for fewer BitCoins than you paid for them. Loans have to be paid back with money that is more valuable than the money that was loaned. Even a 0% loan is unattractive if it must be paid back with currency that is worth 10% or 20% more than what was loaded. It becomes unprofitable to be in business. It becomes too risky to take a loan to start a new business. Money becomes more valuable but it goes out of circulation because everyone is terrified to spend it.

It won't function as a currency, b/c it's too volitile, but it's great for speculation, that it has fulfilled 100%. Give that wheel another spin, I'm all in!

Dr. Richard Head's picture

That's exactly why bitcoins are converted into USD for purchase and selling. 

Not that I am holding any bitcoin nor want to. 

 

Dragon HAwk's picture

Scared me for a Second, I thought they said My Boat Anchor was Gone..

BSHJ's picture

Here, have some bitcoins.....00001100110001110000  (now send me some of that crappy old green paper stuff)

aloha_snakbar's picture

...there's no way NiceHash can restore money to miners' wallets.

 

Well, they can always complain to their Senator or maybe the SEC...oh, wait, I forgot no one gives a fuck...LOL...

Greendawg's picture

wait wait......theres a coin for that.   With Fuckcoin, you too can now give a fuck!   https://bitcointalk.org/index.php?topic=421182.0

Righttoarmbears's picture

I have tried to keep out of the Cryto debate so far as i used to mine, i have a very powerful Mac with a monster Graphics card that supports Open GL so the mining software could use the maths co-pro. i used to have the mining software on the machine and kept a full copy of the chain updated, this was at a time when Bitcoin was about $34 and litecoin was about $3, eventually the chain became to big to keep your own copy, i started using a wallet on a Czech hosted free system that would just take 0.1% of your mining output as a fee, but as mining became more difficult and everyone started using bespoke systems, i lost interest, i traded my coins and got on with other things, plus you could only use it in certain places and you had to use TOR for half of them. but i did keep in touch with some of the others that carried on mining, the Czech hosted system started charging more and more for hosting wallets and if you had less than 10% of a coin for more than 3-4 months they just closed your account and took the wallet!! so this event does not surprise me.

now im am not going to knock bitcoin as i think that it has its place, but having seen some of the stuff that has gone on over the years with it, there is risk, there have been about 4-5 cases of significant coin theft that i can remember and if you want total control over your coins the current chain for Bitcoin is just over 150gb and take about 20mins to update on a fast connection and this will grow exponentially the more its used.

 

if you have you wallet with someone else, then you only have control until they decide otherwise. or someone steals it, the idea of all of the cryptographic currencies were that they were unregulated and not controlled by any one entity and while this is a lovely idea, it does mean that should your wallet be stolen, no one is ultimately responsible, the police will not be interested!! yes most governments are stealing from all of us. but remember that most of the original uses for cryto was for under the radar transactions and some of those folk are still involved they just have their public face on while it suits, or have employed and more believable face for the company.

 

as with any form of investing if its money you can afford to lose should it go pants then good luck.

EddieLomax's picture

150gb blockchain?  Sweet mother of Jesus.

How big will it be when this thing finally gets used by a significant fraction of the population?

Righttoarmbears's picture

i would guess that as each transaction is recorded and added to the chain, the same as any large relational data set the possibilities of a corrupt chain grow as well as its size, so its popularity may well be its undoing.

qr259100's picture

It isnt going to work out in the long run but as long as you get in and out you will make some money

83_vf_1100_c's picture

  I think my DishNet internet is capped at 20gb per month. Is he really saying a transaction is 150gb of data? That is fucking retarded. Move the decimal point 2 places to the left and it is still retarded.

Righttoarmbears's picture

You only ever need a full copy of the chain if you are directly mining, most people pool mine as a group unless they have a dedicated set-up. so the 150gb is only ever needed for acting as part of the network, but its is also the only way to be truly in total control of your stash!!

Panic Mode's picture

Anyone can hack it (even government) and you can't even trace or sue anyone. There is no regulations at all.

Dumpster Elite's picture

That's what so great about it...it's "anonymous"!

blentus's picture

So why don't you hack it, then?

One of We's picture

Doesn't each coin have a signature?  Couldn't these coins signatures be flagged by exchnages/merchants so they would have to do some splanin' before they were put back into circulation?

Righttoarmbears's picture

the whole idea of cryto coins is that they were virtually untraceable, bit of a double edge sword and why hackers love them so much :)

 

unplugged's picture

whatever a human makes, a human can break

the hackers have time on their side - plenty of time 

and their motivation just keeps increasing

Righttoarmbears's picture

for every individual person working on protecting any system there will be a minimum of 10 in every country in the world trying to break it, so the odds are stacked and some will just do it for the kudos of showing the lamers who's boss.

qr259100's picture

BitCoin is traceable you just need a quatum computer to do it. Call the NSA and see if they will do it for you. 

DC Beastie Boy's picture

They can use the stolen BTC to buy any number of Alts that use darksend, mix them and rebuy BTC, no trace.

qr259100's picture

No only the digital currency cloucoin can be reclaimed 

kavabanga's picture

Hi traders, 

As you know, I have been studying BTC/USD for some time. 

Price recently broke a minor (Yet significant technical) resistance level at 11820. Price has moved nicely since the breakout, and now I am expecting an up move to the target level of 13580. 

Our target is based on a measure move of previous bullish impulse leg and the successful breakout of the structure resistance . The measurement target also coincides with sideways resistance, and Fibonacci extensiontarget level. Knowing this, we now have a very probable and robust target for price to achieve. Price has had a nice run since posting, and I am expecting impulse to continue as per. 

The above is just half of the analysis. There is more. 

Recently, BTC/USD has been neglecting and leaving behind ALL of the support levels that have been thrown in front of it. This has resulted in obviously a massive price increase, but also a belief that Bitcoin is something not to be reckoned with and is here to stay. 

Looking back on the chart, there was recent horizontal support levels for Bitcoin at: 8400, 9100 and most recently, 10900. 

All of the above support levels have been completely left behind every time. All of these support levels were never used (Despite having a massive mode which is a compelling support ceiling) and price just ran away to the highs anyway. 

Only the most recent support at 10900 has been used as a legitimate support level . Now, even with this happening, BTC/USD used it briefly, and went to the upside. 

With structure being constantly left behind, and price gradually using legitimate technical rules such as structure support/resistance etc, we can now see Bitcoin might have had its rally to it's desired price and now price is stabilizing. 

With price stabilizing at such high levels, it is hard to argue with the facts. Bitcoin is in an uptrend, and is now stabilizing. Especially with the technical stabilizing we have seen, it is hard to deny that there is a real possibility that the trend seen now could be here to stay, and there could be much more to come.

Chart.

Identify as Ferengi's picture

You forgot to mention the midnight deadline for $1495.00 to get "in" on your "system."

Peak Finance's picture

LOL and not even a blip or a buying opportunity here

13311

ogretown's picture

Yes, nothing to worry about.  BIGG joined the party today, brisk trading and a huge increase in their financing. Rumor has it the new people joining the company will be familiar names out of the agencies that help keep America safe.  They will work hard to track each and every trade and who owns each and every wallet. So, it should be up, up and away for Bitcoin.  Makes an old logger smile! 

cpnscarlet's picture

Bitcoin freaks need their own version Captain Unactionable Faggot Haircut to answer the Blond Bastard Beacon and come to their rescue like he did for all of us silver stackers!

Panic Mode's picture

Exchange Owner: Oops, sorry guys. It's gone, you know ... shit happens. We will try harder next time.

Robert Trip's picture

Where did the dough go?

Into the CEO's pocket?

You've just been scammed suckers.

Merry Christmas.

MrSteve's picture

STOP THE PRESSES- - -  We Wuz ROBBED! Anyone thinking that the Mob wasn't getting in crypto big and early doen't understand accounting.

cosmyccowboy's picture

by mob you mean the federal government of the ussa correct?

unplugged's picture

was it really hacked ?

or did they "hack" themselves?

 

JibjeResearch's picture

It requires an inside job.... :)

tropicthunder's picture

All Crypto "HACKS" are just INSIDE JOBS to STEAL CUSTOMER FUNDS.

Taking a page right out of the MT. GOX playbook no doubt..

floosy's picture

Coinbase now hacked? It's certainly down again

Pearson365's picture

With a name like Andrej Nabergoj, I'd say its in his wallet.

Robert Trip's picture

I agree.

Anyone with a name Andrej Nabergoj is going to take you to the cleaners on any investment.

This guy has to be super intelligent just to be able to spell his own name.

a false profit's picture

"...He predicts that bitcoin will die of a grand theft,..."

 

http://www.zerohedge.com/news/2017-12-04/chinas-central-bank-warns-bitco...

 

Nothing like some government-sponsored theft to create fear in a market, and reduce demand 

EddieLomax's picture

It would be a great way to destroy bitcoin for sure, you could go all in on the idea with shadowy group within the CIA prepared to go to any length to destroy bitcoin before it undermines the US government.  In theory no violence would be needed, but you could add any level of covert violence in.

But if there are no conspiracy theories, here I'm always suspicious of ones that require people to kill others, government employees are not bred specially, there is the possibility that one single person could steal all your bitcoin from a hack or insider job, and then its gone.

Peak Finance's picture

Currency traders get blood-bathed once in a while. Shit happens. I remember the CHF bloodbath not too long ago.

You NEED to trade this shit like a currency, PERIOD

This means proper risk management, position sizes, etc.

Take profits as you go. Small position sized until you know what you are doing. You can trade in 1/10ths lots until you have a lot of confidence. 

 

 

EddieLomax's picture

Good thing no other organisation could possible have someone on the inside who would steal the password and run off with all the bitcoin.

Otherwise just one single corrupt employee could steal all your crypto-currency and get away without anyone else being able to trace them.

seek's picture

"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."

Uhh... No one is "home mining" bitcoin on GPUs. It's nowhere remotely profitable. You could used Nvidia's data-center grade GPUs and generate all of 0.00004038 BTC -- that's 57 cents -- in a year. GPUs are used for altcoin mining.

While Nvidia and AMD are beneficiaries of altcoin mining, and even there, the contributions to their bottom lines are relatively small. In their last earnings announcement it was about $70M out of $2B.