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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DuneCreature's picture

I'm not so sure about 'air gapped' storage either.

Here is a link you will find fascinating, samsara. ... You are a student of the OKC bombing op as I recall.

Deep Black Ops Contractor Exposes OKC =

https://www.youtube.com/watch?v=euw7Lh6XrxM

Better catch it before it disappears.

Live Hard, Who Has The NSA Key To Your Crypto Wallet?, Die Free

~ DC v8.0

samsara's picture

Long time no post DC.    Yes,  OKC,   "... We found unexploded bombs...."   local police scanner

 

Thanks for the link.

Last of the Middle Class's picture

"our service is currently undergoing maintaince" LOL

homiegot's picture

Nothing to see here. Move along.

Robert Trip's picture

"We won't be doing fuckall for at least the next year Honey.

Sorry."

PenGun's picture

Have your own wallet and transfer any buys right away. Back up your wallet and store the backups widely.

It's digital and on the internet ... eh'.

Jack Oliver's picture

You wouldn’t believe the personal info you have to ‘give up’ - just to buy BTC !

If you think BTC is ‘organic’ - you are a FUCKING fool !!

qr259100's picture

You make a very good point. I felt stripped searched and I thought jees these guys have my whole idientity

GotAFriendInBen's picture

Bye Bye BTC

But they're "working with authorities" to find stolen currency designed to circumvent the authorities

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.

cat2005's picture

I think the exchange, rather than Bitcoin itself, was hacked. This is why you don’t store them on an exchange.

J Mahoney's picture

I guess its a safe assumption Bitcoin down 2000 tomorrow and Gold up 20 ??

CoCosAB's picture

slaves are DUMB so... tomorrow Shitcoin UP 2000 Gold down 20!

Juliette's picture

It doesn't really matter ... it just means that sb. else is enjoying those stolen BTC right now!  LOL

Apocalypse Wow's picture

It was a toss up between bitcoins or tulips, thankfully I went for the tulips.

DC Beastie Boy's picture

Tulip bulbs are surprisingly not cheap

PrivetHedge's picture

Yup, they rose 15% yesterday, they're a growing asset but you've gotta get your hands dirty.

Apocalypse Wow's picture

What is the best accredited hacker school to sign up to for the bonanza course?

PrivetHedge's picture

I'm not sure, they all retired to Rio suddenly last night.

mrdenis's picture

Where were Hillary's and Bill's whereabouts as this was happining .....?

bcking's picture

How many times are these dummies going to leave their bitcoin on exchanges. What morons.

SunRise's picture

Once Each

LIFE, where you get the test first and the lesson later.

CoCosAB's picture

eheheh the hackers from NK just (crowd)funded the next rocket launch!

Jack Oliver's picture

Everybody wants to redeem their BTC for $US - What happens when there are no FUCKING buyers ???

Well - You are stuck with an internet ‘wallet’ and it’s not even FUCKING leather !!

Stormtrooper's picture

The Italians are prime suspects.  They are the best a picking pockets.  Now they must have shifted to electronic pick pocketing.

Peak Finance's picture

LOL Dude the "Roma" master criminals are NOT from Italy

Get your shit straight! 

 

https://en.wiktionary.org/wiki/Roma

 

SunRise's picture

Bitcoin Privacy will be voluntarily relinquished.

Fireman's picture

Fedcon already waiting in the wings as soon as the sheeple are penned.

https://techcrunch.com/2017/11/29/coinbase-internal-revenue-service-taxa...

Conax's picture

This could turn ugly very quickly. If I had a hundred thou in btc in there, and some dweeb says, oops, it's gone! I might just diaper up and go looking for said dweeb.  Somebody could eat some lead here.

The higher the price, the bigger the risk for the 'keepers'.

JuliaS's picture

Blockchain "technology"? Some technology that could only be a product of net consumption society. Valuable electricity converted into useless stings of bits and then traded at multiples of many physical assets. How about instead of trading sources of energy such as oil and gas, I'm going to market an exhaust derivative and call it a carbon credit. What? Someone already done it?! Oh snap!

Apocalypse Wow's picture

The proverbial pin that pricked the bubble?

cherry picker's picture

I thought I saw a virtual wallet pass by my monitor a few minutes ago.  Must be on its way to its new owners in Hawaii :)

Pumpkin's picture

Don't worry, it was just a glitch.

IDESofMARCH's picture

INSANE INVESTORS Drive Bitcoin price $ thousand higher after hacker steals $50 million. Each time there's a Bitcoin heist all Bitcoin has to do is EXPLODE HIGHER (get pumped by the pumpers ) and the theft gets wiped out. ---- THEN ! the thief leaves the building with their STASH.

WasNotWuz66's picture

Not investors, although I'm sure that's what they would call themselves.  This is straight up gambling, particularly at these insane prices

Fireman's picture

Another day another dolor on the blockchain gang. Who needs banksters when hackers will do.

Electric tulip gardener Shlomo Satoshi send very big tank to flock of beli€ver$ from ethereal Blipcoin Temple.

 

Soothing Bubbl€$, rising always rising in cashless Nirvana. May the Blip be with you!

http://www.bitlisten.com/

Harry Lightning's picture

Forgive me for my ignorance, but I have two questions about this hacking that I hope someone can answer for me.

I have read that every unit of cryptocurrency has its own unique identifier, cased on the letters of code in its identifier which make up the blocks of the blockchain. 

Does the exchange where the cryptocurrency is traded keep records of who the buyer is for each unit of currency in each transaction, so as to record the legal owner of that unit ? If the exchange or even the owner keeps such record, how would a hacker be able to use the stolen unit...wouldn't the owner be able to alert every exchange that his unit has been stolen aand thereore not to permit that blockchain to be transacted in the future ? 

Secondly, I read a comment that its a bad idea to keep your cryptocurrency units in a wallet at the exchange where it was purchased. How does a cryptocurrency owner transfer the units of cryptocurrency away from the exchange where it was bought, and where should a unit be stored after it is purchased. Do people create a folder on their home pc to store their crypto units, or are the banks to store them in ?

 

 

A82EBA's picture

Bitaddress.org

store them on a paper wallet

jmack's picture

you can track that public key on the  blockchain via a blockchain explorer, https://blockexplorer.com/,  but he can go to shapshift.io  or other "mixer" services and convert it into monero or whatever other alt coin that has good anonymity, and try to launder it that way, not sure how effective that will be in a high profile case like this, though.  

 

    You can go here to create a bitcoin wallet to move stuff off exchange, not sure of a good site for ethereum or other alt coins. https://www.bitaddress.org

 

Kefeer's picture

This day last year BitCOiN was $756.  Right now it is $13400; there isn't even a name for this..."bubble" doesn't describe this...perhaps insanity??

It is becoming quite obvious that BitCOiN was created by the dark-side and not some Japanese man.  Especially given BitCOiN's entry int the public square, in the aftermath of 2008-2009.  There is a good interview on USAWatchdog (Greg Hunter) today that talks a lot about the deep-state and a lot of talk on BitCOiN.  

In the mean time this will continue upward and by this time next year it should be over $50k and that would be a slow-down.  The "deep state" is preparing the minds for the "digital currency" to be used by the world, but it will be their creation - not someone else's and they are already working on it.  Just imagine a world where a new tax law is passed and enforced immediately rather than waiting 12-18 months to see the affect.  Taxing ones labor will never be easier.

Pumpkin's picture

Exactly!  A huge fake gain for a huge fake loss.  Presto, confidence destroyed!

Exponere Mendaces's picture

Years ago when I mentioned Bitcoin the narrative was:

"Its funny money who cares"

Now, the narrative is:

"Its way too high because < insert retard theory >"

Yeah, you guys are fucking WIZARDS at getting it wrong.

messystateofaffairs's picture

If its not in private cold storage it might not remain yours.

Brazen Heist's picture

Man, come on. Who stores BTC at some dogy exchange like NiceHash. NiceHash sounds like a coffee shop in Amsterdam.

A82EBA's picture

Im hoping the deep storage vaulting service at coinbase is alot safer