Nicehash mining pool hacked, payout system compromised

Nicehash mining pool hack officially confirmed, payout wallet with 4449 BTC now empty
07 December 2017   1090

Around midnight Nicehash mining pool was hacked. The result – payout wallet had been emptied by unknown party. Right now, the pool's website is down for maintenance with official press release in place. According to them, the security breach is being investigated right now.

The net is ripe with rumor about this incident. The best guess, confirmed as of now, was that Nicehash Bitcoin payout wallet have been stolen. While the staff didn't release any information about exact amount, the pool's patrons across social media conclude, that the pool's wallet had 4449 BTC and all the money were gradually transferred to another account during several days and sent away to wipe the trail. If the guess is correct, than the logical question would be why no one from Nicehash noticed the transfers during that time, and the investigation, internal and by the local authorities, began only when the wallet balance hit zero?

The official press release doesn't disclose such information, only citing, that appropriate authorities and local law enforcement have been notified and everything in their power is being done to restore site and pool operations.

In response to the security breach of that magnitude the pool's website has been shut down and hasn't come online as of yet. By users’ reports, all the mining operations have also been suspended until further notice. Users can't log in to view their payout balances, and the note on the site strongly recommends to change online passwords, as a precaution.

Largest mining farm to be built in the UK

The well-known UK tech company Bladetec is building the first large Bitcoin mining farm in Europe
20 March 2018   165

Bladetec had already got an experience in IT support for NATO and the Ministry of Defence of the UK in the past. Today its idea is funded by investors in a limited company which is protected by UK law.

The facility - Third Bladetec Bitcoin Mining Company (TBBMC), situated on the Southeast of the country, is going to cover 3,500 square feet in three different places: in London, Suffolk and Surrey.

Today the company is raising £10 million from investors for building and operating the farm for up 2 years. The farm will become global and significant, also it is supposed to be introduced in the world`s top 25 and produce considerable return for shareholders (as a result of its dominant position).

The minimum investment to TBBMC project set by the company is £ 5,000 from each applicant. The project allows the capital growth up to even 45 % within a period of 2-3 years. The returns for the shareholders at that stage would be based on the Bitcoins sales`proceeds and the ASIC machines. If the price of Bitcoin does drop by 40 %, an investor may lose 22 % of his capital.

The company declared that it is going to mine 1,280 bitcoins within a period of two years. Nowadays it's difficult to predict how much those Bitcoins may be worth in two years. According to current prices, they will be valued at £ 7,8 million. But the situation may probably change before 2021. As for the raised funds, they would mostly be spent on the energy costs, despite the low energy bills' agreement between Bladetec company and the intended wind farm.

Bitcoin mining is more popular in the countries where the weather is cold (such as Iceland and China). The government of Iceland can implement a tax on mining because of the energy consumption. Chinese authorities insists on the ending of the cryptocurrency trading and mining in the country.