EU Bitcoin Mining Company, NiceHash, Hacked for Nearly $70 Million

This week, a Slovenia-based Bitcoin mining company, NiceHash, was infiltrated by “highly professional” hackers stealing approximately $64 million worth of Bitcoin. With its current value around $16,000 per token, the theft was equivalent to about 4,7000 Bitcoins.

nicehash

NiceHash shut down their website to investigate. This recent surge of growth Bitcoin has been experiencing is simply phenomenal but the security breach bewilders many experts on whether or not the currency is as sound as imagined. All in all, cryptocurrencies are performing well with their market share totaling over $400 billion. NiceHash posted a press release on their website’s homepage while the servers were down explaining the situation and expressing gratitude for the continual support.

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

Yesterday NiceHash CEO, Marko Kobal and co-founder, Sasha Coh started a Facebook livestream video to address this most recent attack. Users were not afraid to show their dissatisfaction with the company’s level of security and some even suspected that it was an inside job. Kobal assured viewers that they have not abandoned them and are doing everything in their power to rectify the situation. He explained that an employee’s computer was compromised which led to the unprecedented hack stripping their wallets of available Bitcoin. Kobal mentioned their successful business model, that over the last 3 years cashed out miners over a billion dollars, attracted those outside of the EU with malevolent intentions.

Unfortunately, we became a target and someone really wanted to bring us down. It was a highly sophisticated attack.

When asked whether or not the company will reimburse their wallets, the founders did not respond. Kobal assured the audience that a “forensic analysis” with both national and international law enforcement was taking place. However, this has yet to put skeptics at ease as this incident adds to the growing list of security issues surrounding cryptocurrencies.

Last week, a crypto ICO was reportedly scamming its investors for $15 million becoming the first in history to get on the radar of the Cyber Unit set up by the Securities and Exchange Commission. In November, a “code bug” froze Ethereum’s digital wallets prevented users from accessing $150 billion. Tether also reported that nearly $31 million of their currencies were taken in a similar breach. On an interesting side note, creator of the Mariposa virus infecting millions of computers worldwide was their chief technical officer and now convicted prisoner, Mattjaz Skorjanc. This could add further support to the accusations from viewers of the breach being internally instigated.

With all of the wallets available, it is best to make sure that you choose one with the most protection and insurance. Although this doesn’t guarantee that a hack won’t occur, it provides some type of comfort in a currency that is equally dangerous and auspicious.

How do you guys feel about the response from NiceHash? Was it an inside job? Do you think that this incident will be detrimental to the credibility of cryptocurrencies as a whole? Remember to drop us a note and share your thoughts on the matter.


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