NiceHash CEO quits after $63 Million USD is stolen!

2018-01-02 06:25:33

NiceHash logo

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:

“It was an inside job. There are too many inconsistencies in their story to be anything else. I’ll never go back now. Fool me once, shame on you, fool me twice, shame on me.”

CEO Mark Kobel resigns

“I shall now stand aside and allow new management to lead the organization through its next, exciting period of growth – therefore I decided to resign as CEO of NiceHash.” – Mark Kobel

Mark Kobel stepped down as CEO and a new management team has taken over. Kobel confirmed his resignation in a statement he released on LinkedIn. In his statement he praises the work of NiceHash and wishes the new management team the best of luck.

What does the future hold?

It is uncertain what the future holds for NiceHash. However due to the fact that it has promised to reimburse users for the money that was lost and the drastic actions of the CEO stepping down. It appears that they may have avoided going the way of Mt. Gox. The Japanese exchange once handled 80% percent of the worlds bitcoin trades but had to file for bankruptcy after losing roughly 850,000 BTC.  For now it appears the NiceHash has recovered, with online users saying they are back using the platform.

PRD.Co.,Ltd is researching and developing products utilizing blockchain technology in Vietnam.

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