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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Drop-Hammer's picture

I have commented on most of the recent Bitcoin stories and have stated to stay away from JewCoin.  It is sleight of hand.  From my understanding, people use 'real money' to purchase it and hope that it increases in value.  But, it exists only in hyperspace and can be stolen like this story relates.

Nature_Boy_Wooooo's picture

We noticed.

You say crap like joocoin so everyone thinks you're an idiot and do the opposite of what you advise.


Rex Andrus's picture

No one would have believed the Federal Reserve was watching bitcoin so keenly and closely, regarding it with envious eyes, slowly and surely drawing their plans against us.

Ankhenaten2's picture

Buy fastbrick robotics listed on the asx(Australian stock exchange with ticker: FBR )

THEY have the patented first robotic bricklaying robot that can build a house in a day:

RebelElf's picture

can it build blockchains?

Apocalypse Wow's picture

$13,000...a fibonacci hyper top.

RedDwarf's picture

Do not store anything on an exchange.  Exchanges are not safe.  Only use exchanges for exactly that - to make an exchange from or to BTC and a fiat currency.

As for the retards who keep conflating an exchange being hacked with bitcoin itself being hacked, please stop.  All you are doing is making our brains hurt due to your ignorance.  It's no different than if you have gold in a safety deposit box and the bank gets robbed or the bank steals your gold.  Blaming the gold itself would be retarded right?  Well same thing here.

Nature_Boy_Wooooo's picture

Nicehash is not even an exchange, they are a mining platform. Anybody storing large amounts of Bitcoin in their wallet is just plain lazy.

I got burned for $26 of my hash power which overall set me back about $1 and a little wear and tear on my GPU's.  Although I just received a payment from them, worst case would have been if you were one day away from payment.

I will continue to use Nicehash. Hopefully they will increase their payment frequencies to avoid this in the future. Send my payment once every week to my Trezor and we're good.

jmc8888's picture

Alot of bitcoin sure, but this is going to be a situation where thousands had fractions of a bitcoin.  Like 1/100th, 1/1000th, 1/10000th.


The reasons it's held in there is because of the withdraw fees.  If you mine, say with one GTX 1070, the withdraw fee is larger then what you mine in a good amount of time.


It's set up in a way that from something like 0.0001 to 0.1 or something like that has the same fee. So the casual miner needed to mine for about 2-3-4 months to make it worth it to withdraw it to an external wallet even once.


It's not about payment frequency, it's more about withdrawl fee.  It was especially outdated because of the rise in bitcoin.  Maybe they lowered it a bit, here's what it recently was per a cached page of their website from Dec 4th.


Less then or equal to 0.15 BTC withdraw = Fee of 0.0003 BTC

More than 0.15 BTC withdrawn = 0.2% of withdrawn amount


So yeah, it drastically favored big versus small.  Lots of small people got screwed out of what they had, mostly because of withdrawl fees.  Up to recently it was 0.0005 BTC fee I believe. 



aloha_snakbar's picture

LOL...the stupid price level kind of puts a target on the back of all crypto holders. You put it online to do a transfer...*woosh*...its gone. Or maybe someone at ZH sells some IP addresses on the dark web... and one night some masked bad men knock on your to be you...

gunzeon's picture

yeah, no different from all the guys here that are stacking ... track down their address from a free silver threepence offer that they will post and must get their address and you can guess the rest.

Don't need to be an Einstein, prolly happened to members here already, who knows ...

"give me the combo to your safe mofo or i'll snip another toe of with these Falcos"

instead of

"give me your wallet keys and or password fucker or i'll give you a squeaky voice with these here Falcos"

g1n3k's picture

I'm holding my gross fart, waiting for the youngster Exponere Mendaces to come here and explain me when I should release it.

TahoeBilly2012's picture

INSIDE JOB any way to bust them, NO! You thought real banks were bad, these wallet sites have no regulation. All they need to do is forward to a BTC acct in Africa and no one can ever prove what happened. I would stick with Citibank over this crap and I don't even trust them. Insanity. You leave $50Mil in some Net startup.

Government needs you to pay taxes's picture

There goes the ethermunny!  Safer than a bank vault. . . Bwhahahahah.

rsnoble's picture

Lmfao! Lose 62mil but will be right back at it tmrow please invest some more.  Insane. You can fkn have it.

BSHJ's picture

was it 50 mil at yesterdays bitcoin price or todays?

PrivetHedge's picture

Yeah it'll be 60m today and 70m tomorrow.

cherry picker's picture

I am starting a new crypto called BitVanish and instead of using chains, which sometimes break, am using block cable.

Only $25 K USD to get in

Hurry before it is gone :)

Rex Andrus's picture

We want to help you, Mr. Valentine. My brother and I run a privately funded program to rehabilitate culturally disadvantaged people.

GodSpeed_00's picture

All your Bitcoin are belong to US!

Versengetorix's picture

This is precisely why I am so big on "cloud computing." What's not to like?

silverer's picture

I call it "fog" computing.

Ink Pusher's picture

AND... It's GONE. 


silverer's picture

If nothing else, Bitcoin is demonstrating how worthless US dollars are. Panic time for government and banks.

Ink Pusher's picture

How worthless all fiats are... including these unsecured digital varieties.

So fuckin' what,  crypto is just an example of another black market currency, like any criminal enterprise ;anyone willing  to play should realize that there's a better chance to get burned than there is to actually profit.

This isn't the first uninsured multi-million dollar hack and it sure as hell  won't be the last, in fact I fully expect the burns to grow in frequency and volume as hacking crews become emboldened ...

GoldHermit's picture

The sheep are in the pen and the wolf approaches. Don’t worry the government will offer you a great deal on their ICO.

Peak Finance's picture

Ok, now 13999.99

I am actually scared of a blow-off top now

I am out for the meantime


0valueleft's picture

Will it rip to 14300? yup

Jack Oliver's picture

You would have to be a fool to think that a small BTC investor in 2009 - would be allowed to become a FUCKING multi millionaire - 8 years later !

That’s NOT how the Rothschild’s operate !!

Aerows's picture

People weren't investing back then.  They were just mining.  You had a few spare boxes, fired them up, and mined.  Of course now you need a powerful ASIC to mine BTC, but then, you could have had a couple of million sitting on a spare hard drive somewhere if you forgot to look!  LOL.

Nature_Boy_Wooooo's picture

LOL at. all of the goldbugs excited about this who have zero knowledge of what nicehash is.

People who had their own wallets setup to receive their mining profits lost minmal. The losers were the ones too lazy to setup their own wallets. Nicehash is a mining platform not a secure wallet people need to take some accountability.

Lesson learned.......drop $120 on a hardware wallet (Trezor, ledger, etc.) And be done with it.


Aerows's picture

This.  Anybody that believes that the person that set this up knew nothing about how to secure it is a complete fool.

Greendawg's picture

ROFL After getting suckered in and robbed, your advice is to get suckered in and robbed even more. 

silverer's picture

"If you can't stand in front of something and physically defend it with a firearm, then you don't own it and probably never did."

Ann Barnhardt

Aerows's picture

You can.  It's just a lot of people are inexperienced with the tech, jumped in feet first without knowing about securing your wallet.  That's why it is a totally bullshit story about being "hacked".  

Ajax_USB_Port_Repair_Service_'s picture

Some guy casually walked away with a 5 gallon pail full of bitcoins.

Aerows's picture

Yeah, the CEO of NiceHash.  If anyone actually believes that this guy didn't know anything about security and cold storage of BTC, backing up the system redundantly and constantly (anyone can, it's hardly new technology) to a second and third location?  Oh, and the best part was all of that was transferred a MINUTE after they went "down for maintenance".

This dude won't be walking away in handcuffs.  I wouldn't want to be the person investigating and finding what is left of him. After all, it's not like he's a Wall Street banker.

topspinslicer's picture

Think I saw tmoses on the mountain top being led away in cuffs

Nature_Boy_Wooooo's picture

Hopefully he didn't jump.

Bitcoin has been on a tear ever since he got suckered into selling all of his for bcash.


Aerows's picture

Inside job.  I didn't lose anything because I wasn't dumb enough to keep my funds on the same wallet I was mining in the pool for.  All I lost was what was coming in the next payout up until the next pay period. ... WHICH ... is what everyone else lost, too, which oddly enough happened when BTC prices have soared. The people that used their NH wallet because they make you wait to get a payout and charge a 1.5% fee to send to an external wallet?  Oh boy.  The folks with rigs that were churning out $3-4000 per day even BEFORE the soaring price of BTC and lost all of that?

Hmmm.  Many can put two and two together.  I lost about $80 LOL (well, now more like $140, but again, meh).   That's not worth even getting excited over. 

LOT'S of people trusted this cat, though, and got screwed.  If he's planning on escaping to a tropical island, he'd better make sure it is to one no one knows about because once everyone that has lost a lot realizes how screwed over they are?  Well, there are plenty of ways to skin a cat. 

GodSpeed_00's picture

NiceHash miners on suicide watch.

Nature_Boy_Wooooo's picture

I lost $26 ohhhNoooooooos.

Wait a only cost me $1 in electricity.

I  lost $1.



jughead's picture

What's NOT in YOUR wallet?

Miss Informed's picture

How do they know it was stolen? Maybe they just lost it behind the sofa or something.