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:

* * *


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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MagicMoney's picture

Which kind of mining are you talking about? There is two reasons to mine in BTC. New BTC and BTC fees for processing the transaction.

seek's picture

For BTC it's irrelevant, regardless of the source of BTC. You're not going to see even 1 GH/s (more like 0.1 GH/s) out of a GPU. You don't have to believe me, drop that number into any of the mining calculators and you'll see even at $14K/USD mining BTC with a GPU is wildly unprofitable.

Switch to a different coin, though, and you'll make $3 a day or so per GPU.

Bitcoin mining on GPUs has been unprofitable for so long most mining calculators won't even show it as an option. When I was mining in 2012 they worked, but once the wave of ASIC miners hit there was no point to it whatsoever, even at higher prices, because the share of the total network hash rate is so low earnings round to zero. I did ASIC mining for a few months before being a small player was too unprofitable to bother.

magnetosphere's picture

zh's crypto knowledge has some gaping deficiencies. they keep on repeating the nvidia mining btc line.

but you were mining back in 2012? mad props to you!

seek's picture

I was. And the rise in early 2013 was enough fo rme to drunkenly give away BTC here that's probably worth 5-10K total, lol.

I've done well but not as well as I should have. Made some dumb "smart" decisions and the risk aversion cost me a lot.

magnetosphere's picture

yea it turns out that outside the 2014-15 bear market, the most profitable way to invest was to go all in immediately. but if you have that kind of personality, then you're more likely to settle on some actual scam and then go broke as well.

so, do you support segwit, or on chain scaling, or what? I support coins aiming for bigger blocks, but not bch, b/c i don't think minority hashrate coins can do well (namecoin, peercoin, dogecoin, and many gpu coins, have had serious problems attracting hashpower).

Grandad Grumps's picture

At least in Zero Hedge's fervor to mercilessly pump Bitcoin, it did not suppress this story. That ouwld have been so MSM!!

gilhgvc's picture




to act like cryptos are gods gift to the common man is as stupid as electing obama twice expecting something different the second time

disagreeableness's picture


Paul Morphy's picture

How much of the rest of the bonds purchased by ECB, BOJ, Fed, Swiss National Bank, is shit?


Greaseball cocksucker Draghi should be hung draw and quartered. Guinea.

Snaffew's picture

looks like the NSA is $50 million dollars in bitcoin richer!

Bunga Bunga's picture

Why would they hack some poor guy's wallet, when they actually - according to some conspiracy theories - fully own it?

affirmed_78's picture

It's funny watching the haters jump on the comment board, then be shocked to find out this kind of stuff has no impact on the price.  It's like if your safe got robbed of $50 million in gold coins.  Sucks for you, but life goes on.

Last of the Middle Class's picture

Kind of like radical Islamic terrorism. Just get used to it.  No thanks! I'll take "poof it's gone for 50 million, Alex" LOL

GoldHermit's picture

and so it begins....

arby63's picture

This cannot--and will never--be contained. The hackers are everywhere and they are global. They will stop at nothing.

cosmyccowboy's picture

not to mention the federal government has a back door into every computer...

undertow1141's picture

Somebody stole tulip bulbs, oh I mean bitcoins, unpossible.

SpanishGoop's picture

Hacker thought "NiceCash".


Last of the Middle Class's picture

Weak link in a  chain come to mind? For $50 million how many computers would you run hacking programs on 24/7 for a chance at the prize? 

cosmyccowboy's picture

it's 99.9 per cent of the time a inside job!

Apocalypse Wow's picture

Bitcoin turns to Shitcoin in a blink of an eye.  If one pickpocket can, hundreds can.  Money for nothing and your chicks for free.

blentus's picture

Oh God, ZH is the place with highest number of blockchain/bitcoin illiterate/ignorant posters, in the world.

EnragedUSMCExpat's picture

Yeah. They are called realists.

pizdowitz's picture

You can also create an "exchange" website for the crypto money. After you collect $50 mln, announce that the hackers stole $50 mln. In & out in one month, or less.

Kagemusho's picture

"...aaaaaand it's gone."

How many angels can dance on the head of a pin? As many as the number of digital ones and zeros you can hold in your hand.. Both are physically insubstantial. As those who have traded dollars for Bitcoin are painfully learning.


Robert Trip's picture

Suck on it suckers.

Thalamus's picture

A large some like that will be tracked down wallet to wallet.  Good luck leaving the hotel.

Robert Trip's picture

The "miners" paid no heed to the canaries dropping dead in the mine.

Jamie Dimon was right.

milking institute's picture

SOOO SAD! reminds me of that horrible boating accident,where i lost all my Gold!  my prayers are with the victims. look at the bright side though,sharing is a beautiful thing.....

EnragedUSMCExpat's picture

HA HA!  Oh.... yeah sympathies to the "victims."

The peace of mind gold provides alone is worth it. Gee, who's yukking it up now?

Greendawg's picture

more like Mt Gox 914.0  There have been so many exchanges robbed of thier shitcoins now.  Some more than once lol. 

roddy6667's picture

Wolf Street   Nov. 21, 2017

Another Cryptocurrency Gets Hacked, Money Disappears. Here are the 30 Biggest Crypto Hacks

JibjeResearch's picture

BTC is a first generation coin.  It lacks validation and formal verification...

As I have mentioned before, 3rd gen coins will take over... 1st gen coin... only a matter of time..


Oh... well....

Now get on the Tezos train.., it's breaking record... :)

Robert Trip's picture

You sound like a carnie throwing free shit into the crowd to loosen them up to hit on that cheap set of knives you're flogging.

qr259100's picture

You have got to check out CloudCoin it is a digital currency and not a crypto currency

Id say this is just 4th gen it is a whole redo

JibjeResearch's picture

I read it.  This is a (RAIDA) centralized system... that stores information on a RAM.  This is a disaster waiting to happen.

This is nothing more than a secured internet network of coins.


I would do more research... when I have more time.. :)  thanks

Apocalypse Wow's picture

Stealing virtual money is not a crime but a virtual crime and no charges can be laid on the hackeroos.

BustainMovealota's picture

I wouldn't be worried about formal charges, With that amount, I would be concerennd with who's money they took.  If that was Mob money, they are done.  They will be found and would wish to go to jail just for protection.

BustainMovealota's picture

$63M  ,  nice take

and $162K just to run the block, and thats legit money.

Block Reward 12.5 BTC
ssgredux's picture

....and it's gone!

CoCosAB's picture

Keeping digital coins in a digital wallet in a digital server IS THE SAME than keeping your paper-money in a physical wallet in a physical bank.

Not a matter of IF but only WHEN you are going to GET ROBBED!


Fucking dumb slaves...

Apocalypse Wow's picture

Watch overhead, someone will be jumping.

samsara's picture

Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha


Again for the upteem time..





40 years working in IT 

homiegot's picture

Virtual currency is worth about as much as the mountains of outdated electronics headed to the landfill.

CoCosAB's picture

That's a no brainer... At least for a few!

Apeon's picture

Army Intelligence School--1966---ALL LOCKS CAN BE PICKED


BlockChain is a Lock, created by humans-----------other humans will figure out how to Pick it