It’s really scary in Bitcoin land. Either you store your coins online and worry about hackers, or you store them offline and worry about burglars, fires, etc.
I’m starting to appreciate the government enforced protections a traditional bank account provides.
It looks like people are saying ~4000 BTC got stolen.
That's ... an incredible amount of coin to be stored on the service. I would never have thought NiceHash had that much usage. Not that I thought NiceHash's usage was low, but ... well let's put this into perspective.
Only 1,800 BTC are mined on Bitcoin per day. Now, NiceHash is _not_ a Bitcoin mining pool; they just pay out in Bitcoin. But that should give some perspective as to the magnitude of funds NiceHash was playing with.
I've seen some people mention cold storage, etc. NiceHash isn't a service for storing coin. The intended usage is to only keep your (the user) profits on there long enough that it exceeds their minimum withdrawal limits. I'm sure some people leave coins on there for a bit longer, to reduce the % of their profits consumed by TX fees. But, for most intents and purposes, the funds on NiceHash are 100% hot funds.
So we're talking about 4,000 BTC of _hot_ funds. It's hard to fathom what their user base must be. It'd be like walking into a department store and finding out they have $56 million in their cash registers; not for any other reason than that they have enough business to justify it.
There's some discussion going on a reddit thread, and people there seem to think this is an inside job
Can someone explain what NiceHash is/was? I'm guessing an online Bitcoin wallet but there no longer seems to be any content on their website to verify that.
Even though I lost ~$500 here and I'm sure others lost many more, the biggest bummer here is that NiceHash is/was a great idea and service that will be forever tarnished.
"We are working to verify the precise number of BTC taken."
How is this not a simple task?
I dont think reddit is reliable here. Some redditor shows up and affirm he has the hacker btc address. How come he knows that. Im supprised bloomberg report the 63$ million number as it seems very weak sourced.
The Slovenian media is reporting that the majority owner of NiceHash is the father of the programmer who created the Butterfly bot (Mariposa botnet) and got busted by the FBI.
I heard he taught as an assistant at the CS school I went to some time ago.
> 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.
That should be easy to find via the transactions. Are they still in your wallet? What's the address? If they are still in there, then use a backup key to move the BTC now. Do you have a backup of the keys?
Being that it is connected to a payment system, it's surely the hot-wallet. No mention of a cold-wallet makes it seem they've been completely wiped.
Multi-edit: Stream of consciousness
What are best multi currency offline or hardware wallet options to store various alts? I hold Eth, Ark, Strats, PAY and a few more.
Is it possible to know with those breaches if it was truly stolen by a hacker, or if it was stolen by them or someone internal?