Nicehash devs reveal the details of attack

The livestream hosted on Nicehash Facebook page with further information about the attack performed on December 6th
08 December 2017   4973

Yesterday we've covered the hacking of Nicehash bitcoin wallet. At that time there were no official comments released about the scale or the exact method of attack.

Now, we have at least some information released by Nicehash team. Total amount of 4700 Bitcoin was stolen by as of yet unknown hacker, or a group of hackers.

The attack commenced on 1:18 AM CET according to available VPN logs. It was performed through a compromised computer at the company's office. The forensic analysis to determine the exact way the security was breached is ongoing. At 1:37 AM hacker logged in with the credentials of one of Nicehash engineers. During the next perpetrators studied the payout system and tried to modeled its work. At 3:24 AM they performed the transfer and have successfully stolen money from Nicehash account.

Local and international authorities and law enforcement organizations are on the case, and the local investigation is in full swing. From all the evidence it seems quite obvious, that the attack was extensively prepared and well-coordinated effort, because existing security systems should have filtered out any such attempt. Unfortunately, the company refused to comment on the internal investigation into possible insider leaks, citing ongoing investigation.

The most important question is, of course, what happened to the miners' accounts. Right now, Nicehash is in communication with the largest cryptocurrency exchanges to track and return the stolen money. The representative said during the livestream, that it will take time, but the company is looking for a way to pay the miners.

As of now, the site is still under maintenance, but the spokesperson said, that the team is working day and night to restore the functionality and to resume mining operations.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   108

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.