November 21, 2019
The cryptocurrency mining service NiceHash revealed that hackers stole approximately $64 million worth of Bitcoin, leading to a temporary suspension of all operations.
Ljubljana, Slovenia | NiceHash
The NiceHash security breach occurred on December 6, 2017, not November 21, 2019. It was a significant event in the cryptocurrency sector where the cryptocurrency mining marketplace NiceHash reported a major security breach. According to official statements from the company, hackers compromised their payment system and managed to steal approximately 4,700 Bitcoins. At the time, this amounted to roughly $64 million.
NiceHash was established as a mining service that connected sellers and buyers of hashing power. It allowed users to pool their computing resources to mine various cryptocurrencies, with payments made in Bitcoin. Given the inherently high-value transactions involved in cryptocurrency and the decentralized nature of digital currencies, platforms like NiceHash were particularly attractive targets for cybercriminal activities.
On the morning of December 6, 2017, NiceHash announced that they had experienced a security breach. An assessment revealed that their payment system had been compromised for several hours, during which the attackers diverted funds amounting to 4,700 Bitcoins to an external wallet controlled by the hackers. The suspension of operations affected all NiceHash services, causing substantial concern among its users.
The immediate aftermath saw NiceHash urging its users to change their online passwords and associated account information as a precaution. The company temporarily suspended its operations to assess and address the damage caused by the breach. They also worked closely with law enforcement and engaged in a thorough investigation to trace the origin of the attack.
In response to the breach, NiceHash pledged to repay all users who lost their funds, which they began to execute by introducing a repayment program. The program aimed to gradually reimburse affected users, a process that was expected to take several months and was conditioned upon NiceHash’s ongoing financial performance.
This security breach highlighted a significant vulnerability within cryptocurrency exchanges and mining platforms, pointing to the need for enhanced security measures. The incident spurred increased scrutiny concerning cybersecurity measures in the cryptocurrency industry, pushing similar platforms to bolster their defenses against such threats.
Ultimately, the breach served as a reminder of the potential risks involved in digital currencies and the importance of implementing robust security protocols to safeguard users’ assets.
Source: www.bbc.com