We have a good relationship with many home miners in South Africa. We provide miners with great Trading Fee Discount Plans so that they can get more profit selling their cryptocurrency on iceCUBED cryptocurrency exchange as they are market makers.
Has NiceHash been hacked?
Today we started to get some worrying information from miners that they are unable to withdraw to iceCUBED Cryptocurrency Exchange platform. We started our troubleshooting steps and discovered that there are some issues on the NiceHash side of things.
The first thing we noticed was that today the NiceHash platform suddenly and very unexpectedly went down for ‘maintenance’. The official twitter and Facebook page of NiceHash both display a maintenance message, but many users are nervously wondering if there is more to the story.
What is ringing the warning bells is there was no planned down time for the services, and the sudden halt of the services has been causing havoc with many miners who are losing money while they are not mining. These miners have had to make arrangements to continue mining, but are not sure what has happened to the bitcoin in their wallets on the NiceHash platform.
Everyone knows that you should never store your bitcoin on a bitcoin exchange or any 3rd party website, but rather store them in a wallet that you control the private keys for. Storing your bitcoin on a platform that might not have as much security and infrastructure in place as a cryptocurrency exchange would, is not the best idea. Many users would withdraw once a week or whenever it was convenient and cost effective with the transfer fees. Subsequently, many users had positive balance on the system before it went down today.
There are now fears about if NiceHash was hacked, then thousands of miners from around the world may have all just lost bitcoin that was being stored in their wallets on the platform.
NiceHash was hacked
Dear NiceHash users!
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.
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.
We are fully committed to restoring the NiceHash service with the highest security measures at the earliest opportunity.
We would not exist without our devoted buyers and miners all around the globe. 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. We will endeavour to update you at regular intervals.
While the full scope of what happened is not yet known, we recommend, as a precaution, that you change your online passwords.
We are truly sorry for any inconvenience that this may have caused and are committing every resource towards solving this issue as soon as possible.
Follow the money
It appears that the main NiceHash wallet has had all its funds moved to a new address. Have all the funds been stolen, or are NiceHash moving their own funds to another wallet for security? Silence still seems to be the only thing coming from the social media outlets for NiceHash, including their website, which all have a notice of maintenance.
See address here: https://blockchain.info/address/1EnJHhq8Jq8vDuZA5ahVh6H4t6jh1mB4rq
From around 5am on 06 December 2017, transactions to the address began, some as much as 1000BTC at a time, to move a total of 4736BTC at the time of writing. Much of this bitcoin is made up from the balances of the users wallets on the NiceHash platform.
Users are now left asking, is this a wallet controlled by NiceHash, and is this maintenance? OR, Are these funds now in a wallet belonging to the person who hacked NiceHash? Many users are demanding compensation for down time, and some have immediately moved to another service provider, while most who had bitcoin on the system are waiting for confirmation of lost funds.
For now we do not have more information, and we will update this post with new information when we have it.