Cryptocurrency Miner NiceHash Hacked – $62 Million in Bitcoins Gone

Crime, News | December 6, 2017 By:

More than 4,500 bitcoins worth approximately $62 million at today’s prices may have been stolen from the NiceHash exchange. The company confirmed the hack today, but did not release totals.

The breach came to light when a large number of users reported on social media that their NiceHash wallets had been emptied. That led to NiceHash admitting via a release that “there has been a security breach involving NiceHash website.”  The web site is a marketplace for miners who went their hash rates to others.

The site has been around since 2014 and has been offline, with a message posted that it was “under maintenance.”  Users were warned to change passwords.

“Importantly, our payment system was compromised and the contents of the NiceHash Bitcoin wallet have been stolen,” said the official statement. “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.”

Although the NiceHash team did not reveal any amounts that may be missing, users circulated a wallet address that indicated 4,736.42 bitcoins – worth more than $62 million – is missing.

Arseny Reutov, application security researcher at Positive.com, which protects ICOs from cyberattack, claimed it was “evident that NiceHash hasn’t paid close attention to security – it hasn’t published a bug bounty program or security policy, and there’s a lack of transparency. Cryptocurrency owners should refrain from storing significant funds in exchanges (remember what happened at Mt. Gox) and mining marketplaces such as NiceHash since they typically use a single wallet for all of their users to avoid fees, which is a primary target for hackers.”