Thursday, December 7th 2017

Mining "Renting" Service Nicehash Hacked; $68M Routed From User Wallets

Another high-profile hack has hit Bitcoin, as cryptocurrency mining pool Nicehash has confirmed that they've suffered a hack which has rendered users' wallets with the service to be emptied. The heist, currently valued at more than $68M, transferred 4,736.4281 BTC in total to the unknown party's (the perpetrator's, almost certainly) wallet. A single transaction of 4,655.25349748 BTC was the most high-profile one to take place, and has left Nicehash users in the cold.

In a post on Reddit, Nicehash representatives confirmed the heist, stating that "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."
"Unfortunately" seems to be too much of a sweet, sugarcoated word for the unmitigated disaster this is. However, the outfit says they have kept their eyes in the ball, in that "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."

Nicehash was one of the foremost ways for users to put their hardware to usage in mining coins. Slightly different from a standard pool, where users contribute their own computing resources to that of a whole in order to increase chances of mining entire blocks, Nicehash worked on a mining power "renting" philosophy, where users contributed their hardware resources and hashing power towards mining workloads that were purchased by interested parties. This let users mine without having to micromanage their mining platform, and let renters of hashing power free from having to invest in hardware that would lose out on value eventually.

Nicehash has also warned users to change their passwords, as a matter of precaution, and has vowed to review and increase their security measures... But that may come slightly with a "too little, too late" taste to it for former and prospective users of the service. It remains to be seen whether they can bounce back from this event or not.

It's interesting to note that Bitcoin's value seems impervious to the event, however; the cryptocurrency has kept on soaring in value after the hack was discovered and announced.

Sources: Coin Telegraph, Nicehash on Reddit
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51 Comments on Mining "Renting" Service Nicehash Hacked; $68M Routed From User Wallets

#1
trog100
it dosnt seem to have had the slightest effect on the grand scale of things .. bitcoin is still heading for the moon just as if the nicehash story never happened..

strange..

trog
Posted on Reply
#2
Franzen4Real
I admit that I don't have a very good understanding of how BitCoin works in regards to the digital wallets. So my question is, can you not have a digital wallet on something like an external hard drive or USB stick? Or is the only option to have your Bit Coin wallet tied to a service such as NiceHash or the late Mt. Gox? If I were a person with any real significant amount of currency, it would be pretty much impossible for me to trust any online wallet service to keep my funds safe. The one and only way I would ever consider using a crypto-currency is if I can have an encrypted usb stick that can be stored offline until I wanted to spend it. Perhaps that's just not a possibility for multiple reasons I am not thinking of. (such as duplication hacks, etc.)
Posted on Reply
#3
R-T-B
R0H1T said:
Now tell me miners aren't (indirectly) responsible for this?
For a fire?

They aren't.

Franzen4Real said:
I admit that I don't have a very good understanding of how BitCoin works in regards to the digital wallets. So my question is, can you not have a digital wallet on something like an external hard drive or USB stick?
You can.

People just are ignorant. And apparently, never learn.
Posted on Reply
#4
mcraygsx
Consumed all that energy and to what end. Serves them about right. This is a result of lack of Federal oversight.
Posted on Reply
#5
Franzen4Real
R-T-B said:


You can.

People just are ignorant. And apparently, never learn.
wow... that is the understatement of the week. For a small amount of $$, ok I guess there is probably a convenience factor of being able to make mobile payments or what have you, where an online wallet makes sense... but anything more than that is crazy.

mcraygsx said:
Consumed all that energy and to what end. Serves them about right. This is a result of lack of Federal oversight.
well... to go back another step further, BitCoin's existence is the result of Government oversight/regulation.
Posted on Reply
#6
the54thvoid
trog100 said:
it dosnt seem to have had the slightest effect on the grand scale of things .. bitcoin is still heading for the moon just as if the nicehash story never happened..

strange..

trog
BTC has nothing to do with mining anymore. It is bubbling nicely, waiting to burst (not crypto - just BTC). The rampant rise of BTC has attracted very wealthy investors, that in turn drives price up. Those investing in (not mining) BTC dont give a shit about cryptocurrency, for them all they see is a sure fire upwards investment. It's quite sad and depressing that something that had hobbyists and tech enthusiasts so 'geeked' out is actually now just another giant wealth bubble owned by the rich. I assume we all read about the Winklevoss brothers? Now BTC billionaires (though they invested early).

Mining, a geek craze creating wealth for the elite (and pocket money for most others). Awesome. :shadedshu:
Posted on Reply
#7
R-T-B
mcraygsx said:
Consumed all that energy and to what end.
The payment network is the end. It arguably is way too inefficient in bitcoins implementation though.
Posted on Reply
#8
R0H1T
R-T-B said:
For a fire?

They aren't.
You mean global warming, surely the increasing cases of wildfires across the world aren't all a coincidence? So yes they are responsible, even if only indirectly.
Posted on Reply
#9
infrared
R0H1T said:
You mean global warming, surely the increasing cases of wildfires across the world aren't all a coincidence? So yes they are responsible, even if only indirectly.
So you 'feel' like mining is the cause? No evidence, just your gut feeling?

I think you're stretching reality to fit your 'mining is bad' agenda.
Posted on Reply
#10
R-T-B
infrared said:
I think you're stretching reality to fit your 'mining is bad' agenda.
Quite. I doubt mining is a drop in the bucket when all of human industry is considered.
Posted on Reply
#11
R0H1T
infrared said:
So you 'feel' like mining is the cause? No evidence, just your gut feeling?

I think you're stretching reality to fit your 'mining is bad' agenda.
So mining is not something that's led to (more) global warming? Really, does this point need any sort of special evidence? I'm sure the many miners on this forum will attest to it, or do you deny global warming itself?
[SIZE=4]Bitcoin Mining Now Consuming More Electricity Than 159 Countries[/SIZE]
Posted on Reply
#12
infrared
I don't deny 'climate change' (global warming is a stupid term) - nice assumption btw, or did you have that jab set up on a macro?
Changes on a planetary scale happen slowly, not overnight like the mining craze. You're looking at an upward trend that's been going on for a long time before crypto mining, and you're going "well, gpus make heat and use electric, must be that".

edit - I mean, it will make a slight difference in the future, not denying that, but blaming more forest fires on crypto mining specifically is beyond funny to me.
Posted on Reply
#13
R0H1T
infrared said:
I don't deny 'climate change' (global warming is a stupid term) - nice assumption btw, or did you have that jab set up on a macro?
Changes on a planetary scale happen slowly, not overnight like the mining craze. You're looking at an upward trend that's been going on for a long time before crypto mining, and you're going "well, gpus make heat and use electric, must be that".
Nice deflection!

No I'm saying the whole mining thing is stupid & fuckin crazy, it's human greed at it's very best. As a proof of concept we already have blockchain, so why do people need to mine $ out of thin air? They could spend the money dedicated to mining (hardware) on something else & so many other/better things. I can understand DC & totally support it, not this abomination!

Yes it is but something like mining is such a massive deviation that the cumulative effects will just add up exponentially. You think mining is just about electricity consumption, what about the extra hardware that was built/ordered just for mining, does that come out of thin air? What about transporting those things, cooling mining equipment et al?
Posted on Reply
#14
infrared
Edited - Sorry R0, had a rubbish day and more argumentative than normal. I actually agree with a lot of your points, just not the forest fires.
Posted on Reply
#15
fullinfusion
Vanguard Beta Tester
It's the government hacking this, They don't want this BS currency..

Blockchain is the future, but for the individual making money = NO, THE MAN DONT GET TAX OFF IT!

They don't want it period.

I'll keep my tinfoil hat on and run away :laugh:
Posted on Reply
#16
Totally
R0H1T said:
You mean global warming, surely the increasing cases of wildfires across the world aren't all a coincidence? So yes they are responsible, even if only indirectly.
Ha, large scale wildfires are a man-made issue but not because of 'global warming'. The fires are naturally supposed to happen on their own they don't get too big but they will happen frequently. Of course, no one likes the occasional spontaneous fire, so some thought it would be a great idea to try and control them. So instead of having a small amount of flammable stuff that catches on fire once in a while, due to buildup we now have huge amounts of flammable kindling that go up in flames all at once. As long as the population of people in fire prone areas continue to increase these fires are going to continue due to the lack of natural occurring firebreaks/windbreaks(i.e. densely packed trees) and the broken equilibrium of active fires and unburnt kindling. Blaming climate change is just a convenient scapegoat.
Posted on Reply
#17
R-T-B
R0H1T said:
As a proof of concept we already have blockchain, so why do people need to mine $ out of thin air?
What would you suggest the blockchain uses instead of PoW to secure the network?

Without PoW, we could do away with mining. But no one has really answered this question yet.
Blaming climate change is just a convenient scapegoat.
Climate change does have an impact on the frequency of fires, but that's off topic for here really.
Posted on Reply
#18
Totally
R-T-B said:
What would you suggest the blockchain uses instead of PoW to secure the network?

Climate change does have an impact on the frequency of fires, but that's off topic for here really.
I'm not saying it doesn't but it plays a much smaller role than the attempts at taming wildfires in the first place.
Posted on Reply
#19
Melvis
lol thats what you get when you start growing money on tree's
Posted on Reply
#20
punani
Melvis said:
lol thats what you get when you start growing money on tree's
In all fairness dollars also grow on trees.
Posted on Reply
#21
R-T-B
Melvis said:
lol thats what you get when you start growing money on tree's
It doesn't "grow on trees." It's a fixed supply, backed by the dollar at this point, via investor money.
Posted on Reply
#22
FYFI13
NiceHash gets away with 60m, as a sorry makes “official” statement on REDDIT :D My granny used to say: “stupid people get beaten even in heaven”.
Posted on Reply
#23
Aquinus
Resident Wat-man
R-T-B said:
What would you suggest the blockchain uses instead of PoW to secure the network?

Without PoW, we could do away with mining. But no one has really answered this question yet.



Climate change does have an impact on the frequency of fires, but that's off topic for here really.
The problem is requiring a limited amount of the currency, hence making the creation of it artificially hard and mining. The US dollar isn't a limited commodity though, the fed constantly creates new notes but, they're also constantly destroying old notes. It's not like bitcoins are constantly being created and destroyed and I think that the limited quantity part is to make up for the lack of there being a good solution to retire bitcoins. The amount of currency in circulation should depend on the number of transactions being made. The amount of money in circulation should scale to use, or some metric with regard to transactions being made.
Posted on Reply
#24
Melvis
R-T-B said:
It doesn't "grow on trees." It's a fixed supply, backed by the dollar at this point, via investor money.
Yes it does, this isnt regulated by any government anywhere in the world, this is literally the same as growing money on trees, and in that case I should have just as much right to buy "dollars" with my monopoly money as people that grow there money from there PC. Mining needs to be regulated or banned in my eyes.

punani said:
In all fairness dollars also grow on trees.
I have to go work and earn my dollars, not just grow it at home on a PC, massive difference.
Posted on Reply
#25
R-T-B
Melvis said:
this is literally the same as growing money on trees
I think you need to look up what "literally" means.

Mining is regulated by the code. No matter how hard anyone mines, no matter how many, there will only be the same amount of bitcoins per block. Period. Only a fixed amount too.
I have to go work and earn my dollars, not just grow it at home on a PC, massive difference.
Speaking from experience, running a mining farm is a full time job. Harder than one at times. There's a reason I left it behind for a normal job.
Posted on Reply
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