NiceHash CEO quits after $63 Million USD is stolen!
NiceHash is the world’s largest crypto-mining marketplace. It is based on the concept of a sharing economy by connecting sellers and buyers of computing power from all over the world. Sellers are provided with the easiest way of earning money through the NiceHash Miner (GUI software). The software auto sells user’s computing power for the purpose of the highest possible profit on the marketplace. The dashboard provides sellers with additional value and data insights in order to achieve better day-to-day mining. Marko Kobal and Matjaž Škorjanc founded the company in 2014. Kobal has said that the company has paid out over $1 billion USD since it started 4 years ago. On the 6th of December NiceHash was hacked in what is being referred to in online forums as “NiceHack”. The founders believe that the attack happened as a result of the recent publicity they had received surrounding the large payouts.
How did NiceHack happen?
The hackers appear to have entered the NiceHash system using the credentials of one of the company’s engineers. In doing this they were able to steal around 4700 bitcoins. At the time Bitcoin was selling at $1900 USD per coin and worth over $63 million USD.
“Given the complexity and security of the systems in place, this appears as an incredibly coordinated and highly sophisticated attack,” Kobal said.
NiceHash advised users to change online passwords, saying it was still trying to understand what had happened during the incident.
“We understand that you will have a lot of questions, and we ask for patience and understanding while we investigate the causes and find the appropriate solutions for the future of the service,” the company said in its statement.
Very little information has been released surrounding the attack. Many people in online forums believe that this was an inside job. The company has released a statement saying that funds that they will announce on the 31st of January when the funds will be restored. However the way that they have handled the PR has left a bad taste in some users mouths. A Reddit user stated: