Nicehash Loses $70m Worth of Bitcoin Due to Security Breach – The Merkle

Cryptocurrency and related activities have attracted the attention of many cybercriminals. Te most cases, thesis criminals go after exchange users or online wallet services. However, they will target any other service which stores Bitcoin balances at some point. Ter the case of Nicehash, a security breach took place this week, and its Bitcoin wallet has bot emptied. This is another major deep-throat for the Bitcoin ecosystem spil a entire.

Nicehash Hack is a Major Setback

Most cryptocurrency users will have come across the Nicehash verhoging at some point. It wasgoed one of the very first public marketplaces where anyone could buy and sell their excess mining capacity for any cryptocurrency. Thesis marketplaces have become fairly popular te latest years, spil most people don’t have the space to mine cryptocurrencies at huis. Companies such spil Nicehash specialize te connecting buyers and sellers te this regard.

Unluckily, they are also centralized services and a point of weakness. More specifically, Nicehash is a webstek which controls payments on behalf of users until the agreed-upon mining contracts are fulfilled. Moreover, it is responsible for treating refund requests, which means a loterijlot of money flows through its wallets on a weekly ondergrond. It wasgoed only a matter of time until hackers determined to attack this toneelpodium, which is exactly what happened earlier this week.

According to the official communication , Nicehash suffered a major security breach. Not only did someone build up access to the toneelpodium through illicit means, but he or she wasgoed also successful te his or hier attempt to compromise the company’s Bitcoin wallet. A loterijlot of money wasgoed stolen spil a result, albeit the company itself never disclosed any information ter this regard. Posters on Reddit optie this address is where all the money wasgoed transferred. At the time of writing, those bitcoins were worth overheen US$70.67 million.

It is not the very first time the Bitcoin and cryptocurrency ecosystem has suffered from such a massive hack. Albeit things had quieted down somewhat te latest years, the year 2018 has not bot overly positive ter this regard. This is another dark pagina ter the history of Bitcoin, albeit the currency itself has never bot affected by such hacks. Every single incident has worried a centralized entity providing Bitcoin-related services being hacked due to bad security precautions or insufficient countermeasures.

The big question is whether or not thesis funds will remain locked te the wallet linked above, or converted to other currencies eventually. Right now, the money is not moving an inch, albeit that isn’t exactly surprising. Once people discovered the address to which thesis funds were sent, it instantaneously got “flagged”. Wij can only hope that no exchange, broker, or mixer accepts any transactions from this address. The best course of activity would be for the hacker to send the money back without too many questions asked, but that is an unlikely outcome.

For the time being, the Nicehash team is working with local authorities to investigate this theft and attempt to recover the money. All services will be resumed without too many problems, but the company has yet to fully disclose the cause of this security breach. All users are advised to switch their passwords te case of any future mishaps. It is a very unfortunate incident for Nicehash and its users, but it’s one that wasgoed coming sooner or straks. After all, centralized entities are a feeble listig te the world of decentralized cryptocurrencies.

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