Nicehash mining pool hacked, payout system compromised

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

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.

Venezuelan miners must register with authorities

Registration for miners is the first step of big legal framework for cryptocurrencies in Venezuela
14 December

Due to hyperinflation and financial crysis, cryptocurrency and mining had become very popular in Venezuela. And as we all know, when cryptocurrency becomes popular in any country, governments always try to regulate, as they see it. Venezuela is not an exception. 

The Venezuelan government is working on the legal framework to tax and regulate cryptocurrency mining. As a first step, it is trying to create a detailed registry of the country's miners. Carlos Vargas, recently appointed as the first "superintendent of Venezuelan cryptocurrency" by President Nicolás Maduro, announced the plan at a press conference on Tuesday. This is reported by the Crypto Noticias. 

We want to know who they are, we want to know where they are, we want to know what equipment they are using. 

Carlos Vargas

Venezuelan Government

Additionally, Venezuelan police have continued arresting cryptocurrency miners.

On December 9, a police team raided a warehouse in the city of Barquisimeto, seizing 21 mining computers and arresting 31-year-old Daniel Andrés Di Bartolomeo Viloria. He was accused of money laundering, illicit enrichment, computer crimes, financing terrorism, exchange fraud, and damage to the national electric system.

Digital currency is not endorsed by any banking institution in the world nor has it been approved by any country. The currency is being marketed with legal appearance but in essence it operates in secret.

Venezuelan Police Statement

Proponents of the new registry say it will create a way for bitcoin miners to operate with legal protections.