AuthorTopic: Crypto-miners hacked again  (Read 58 times)

Offline Palloy2

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Crypto-miners hacked again
« on: December 06, 2017, 02:22:16 PM »
... "and it's gone."

BitCoin mining can either be done individually (long time between big payments) or in teams of miners (little and often). The latter requires you to trust the pool to not get hacked, and who would trust anyone to not get hacked after this.

You can't allow some BitCoins to have a black mark against them while others are good, so the team (Nice Hash) has to be able to back itself to be able to cover any losses, which it obviously cannot do.

I have been setting up a miner using my $15 Orange Pi, but the individual way requires you to start by downloading the entire history of all transactions (currently 153 GB and increasing), and the team way requires you to have 2-factor authentication by Google (ugh!), so I'm a bit stuck.

1 BTC = US$13,5613

Largest Crypto-Mining Exchange Confirms It Was Hacked, Over $50 Million In Bitcoin Stolen
Tyler Durden
Dec 6, 2017

As Bitcoin explodes higher on what now appears to be constant demand out of South Korea, there were unconfirmed (at least until recently) reports that Nice Hash, the largest crypto-mining marketplace, has been hacked with over 4,000 bitcoins worth over $50 million stolen.

Visits to the website over the past 13 hours were greeted with the following maintenance notice.

According to TweakTown, there are some posts by people saying that NiceHash transferred all of the BTC sitting in miners' wallets into a single wallet before NH fully went down.

    If NiceHash were hacked, then it makes sense that the hacker pushed all of the Bitcoin into a single wallet and then transferred it to their own wallet. There's no way of getting it back if that's the case, and if that is indeed the case, there's no way NiceHash can restore money to miners' wallets. If we're talking about $50 million or more, it's going to hurt, bad. 

Earlier, WklTribune reported that they've been in contact with NiceHash CEO Andrej Nabergoj, who said that NiceHash is "assessing the situation and working with the authorities. We'll have a public statement shortly".

And then, moments ago NiceCash confirming there was a security breach:

From the release:

    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.

And the best part:

    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.

One wonders: if one has just had millions in bitcoin stolen, will changing the password really help?

So far Bitcoin has taken the massive hack well, and continues to rise, approaching $13,500.

The news could be negative - at least in the short-term - for companies catering to "home miners" such as Nvidia, the biggest beneficiary of the bitcoin mining euphoria.
"The State is a body of armed men."

Offline Eddie

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Re: Crypto-miners hacked again
« Reply #1 on: December 06, 2017, 04:54:20 PM »
... "and it's gone."

BitCoin mining can either be done individually (long time between big payments) or in teams of miners (little and often). The latter requires you to trust the pool to not get hacked, and who would trust anyone to not get hacked after this.

You can't allow some BitCoins to have a black mark against them while others are good, so the team (Nice Hash) has to be able to back itself to be able to cover any losses, which it obviously cannot do.

I have been setting up a miner using my $15 Orange Pi, but the individual way requires you to start by downloading the entire history of all transactions (currently 153 GB and increasing), and the team way requires you to have 2-factor authentication by Google (ugh!), so I'm a bit stuck.

1 BTC = US$13,5613

Largest Crypto-Mining Exchange Confirms It Was Hacked, Over $50 Million In Bitcoin Stolen
Tyler Durden
Dec 6, 2017

As Bitcoin explodes higher on what now appears to be constant demand out of South Korea, there were unconfirmed (at least until recently) reports that Nice Hash, the largest crypto-mining marketplace, has been hacked with over 4,000 bitcoins worth over $50 million stolen.

Visits to the website over the past 13 hours were greeted with the following maintenance notice.

According to TweakTown, there are some posts by people saying that NiceHash transferred all of the BTC sitting in miners' wallets into a single wallet before NH fully went down.

    If NiceHash were hacked, then it makes sense that the hacker pushed all of the Bitcoin into a single wallet and then transferred it to their own wallet. There's no way of getting it back if that's the case, and if that is indeed the case, there's no way NiceHash can restore money to miners' wallets. If we're talking about $50 million or more, it's going to hurt, bad. 

Earlier, WklTribune reported that they've been in contact with NiceHash CEO Andrej Nabergoj, who said that NiceHash is "assessing the situation and working with the authorities. We'll have a public statement shortly".

And then, moments ago NiceCash confirming there was a security breach:

From the release:

    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.

And the best part:

    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.

One wonders: if one has just had millions in bitcoin stolen, will changing the password really help?

So far Bitcoin has taken the massive hack well, and continues to rise, approaching $13,500.

The news could be negative - at least in the short-term - for companies catering to "home miners" such as Nvidia, the biggest beneficiary of the bitcoin mining euphoria.

Many pot stock speculators abandoned the sector for various crypto plays over last summer, when pot stocks retreated. With so many different blockchain applications being developed, there are tons of ways to "invest" (I use that term with some sarcasm) in various penny stocks that are issuing a whole slew of different coins (as I understand it) a way to raise money instead of selling stock or taking on debt.

Most of them are no doubt out and out scams, but some people have made a LOT of money. I wouldn't touch crypto with a ten foot pole.

When everyone heads for the exits at the same time, it'll be brutal.

I do expect some companies, like Ethereum, will be successful for a while. They appear to be an exception. But only while the music of BAU plays on.

I looked at bitcoin mining last year, and read a bunch about it. My conclusion was that it was too late and that all the low hanging fruit had been picked. Electricity costs money, and computers cost money. You'd need your own server farm to make the big bucks.
What makes the desert beautiful is that somewhere it hides a well.

Offline moniker

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Re: Crypto-miners hacked again
« Reply #2 on: December 06, 2017, 07:21:23 PM »
... "and it's gone."

BitCoin mining can either be done individually (long time between big payments) or in teams of miners (little and often). The latter requires you to trust the pool to not get hacked, and who would trust anyone to not get hacked after this.

You can't allow some BitCoins to have a black mark against them while others are good, so the team (Nice Hash) has to be able to back itself to be able to cover any losses, which it obviously cannot do.

I have been setting up a miner using my $15 Orange Pi, but the individual way requires you to start by downloading the entire history of all transactions (currently 153 GB and increasing), and the team way requires you to have 2-factor authentication by Google (ugh!), so I'm a bit stuck.

1 BTC = US$13,5613

Largest Crypto-Mining Exchange Confirms It Was Hacked, Over $50 Million In Bitcoin Stolen
Tyler Durden
Dec 6, 2017

As Bitcoin explodes higher on what now appears to be constant demand out of South Korea, there were unconfirmed (at least until recently) reports that Nice Hash, the largest crypto-mining marketplace, has been hacked with over 4,000 bitcoins worth over $50 million stolen.

Visits to the website over the past 13 hours were greeted with the following maintenance notice.

According to TweakTown, there are some posts by people saying that NiceHash transferred all of the BTC sitting in miners' wallets into a single wallet before NH fully went down.

    If NiceHash were hacked, then it makes sense that the hacker pushed all of the Bitcoin into a single wallet and then transferred it to their own wallet. There's no way of getting it back if that's the case, and if that is indeed the case, there's no way NiceHash can restore money to miners' wallets. If we're talking about $50 million or more, it's going to hurt, bad. 

Earlier, WklTribune reported that they've been in contact with NiceHash CEO Andrej Nabergoj, who said that NiceHash is "assessing the situation and working with the authorities. We'll have a public statement shortly".

And then, moments ago NiceCash confirming there was a security breach:

From the release:

    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.

And the best part:

    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.

One wonders: if one has just had millions in bitcoin stolen, will changing the password really help?

So far Bitcoin has taken the massive hack well, and continues to rise, approaching $13,500.

The news could be negative - at least in the short-term - for companies catering to "home miners" such as Nvidia, the biggest beneficiary of the bitcoin mining euphoria.

Many pot stock speculators abandoned the sector for various crypto plays over last summer, when pot stocks retreated. With so many different blockchain applications being developed, there are tons of ways to "invest" (I use that term with some sarcasm) in various penny stocks that are issuing a whole slew of different coins (as I understand it) a way to raise money instead of selling stock or taking on debt.

Most of them are no doubt out and out scams, but some people have made a LOT of money. I wouldn't touch crypto with a ten foot pole.

When everyone heads for the exits at the same time, it'll be brutal.

I do expect some companies, like Ethereum, will be successful for a while. They appear to be an exception. But only while the music of BAU plays on.

I looked at bitcoin mining last year, and read a bunch about it. My conclusion was that it was too late and that all the low hanging fruit had been picked. Electricity costs money, and computers cost money. You'd need your own server farm to make the big bucks.
When futures contracts on bitcoin start trading supposedly next week we'll see who really is behind the curtain. In the meantime keep your eye on the bouncing ball!

Most likely endgame: cabal crashes bitcoin and introduces their own crypto.
« Last Edit: December 07, 2017, 07:36:39 AM by moniker »

 

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