NEWS

As Bitcoin Surges, Media Ignores Online Heist Potentially Worth Millions

(by BE Dunn)


If a pickpocket lifts your wallet, how much are they likely to get away with? A few hundred dollars? An old coupon? Your gym membership?

What about tens of millions?

NiceHash, a company who provides a cryptocurrency mining service, may have just lost that much or more.

NiceHash allows its customers to offer up their extra computer processing power to mine new bitcoin or other cybercurrencies,

The entirety of a digital wallet beloging to the company was stolen in a major security breach early Wednesday, and could include millions of dollars worth of customer’s bitcoins.

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As Bitcoin continues to surge, some retailers – such as Steam, have pulled back their support and stopped accepting the cryptocurrency, citing extreme volatility.

This, combined with the recent security breach to NiceHash begs the question, with everyone clamoring over the skyrocketing prices of Bitcoin – why  isn’t anyone accurately covering the full picture?

The NiceHash hack affected the comany payment system, and the entire contents of the company’s bitcoin wallet was stolen. While NiceHash has yet to reveal exactly how much BTC was stolen rumors have begun to circulate that the heist nabbed more than $63 million, based largely on speculation surrounding the opening of a new Bitcoin wallet containing roughly that amount.

“Clearly, this is a matter of deep concern, and we are working hard to rectify the matter in the coming days,” NiceHash said in the Facebook post. “In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement, and we are cooperating with them as a matter of urgency.”

 

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NiceHash is only the most recent cryptocurrency company to suffer a major hack in recent months.

Parity, a digital wallet popular with startups collecting millions of dollars in fundraising, was hacked just last month. Roughly $162 million in the cryptocurrency Ether was frozen after a hacker deleted a line of code needed to access funds stored in multiple Parity wallets.

Despite the, prevailingly accurate, notion that blockchain technology behind bitcoin and other cryptocurrencies is safe, problems seem to arise more frequently as startups in the industry struggle to properly secure their sites and software.