Nicehash to Return 60% of BTC Stolen

Cloud mining platform was hacked back in December 2012 and 4700 BTC stolen
28 August 2018   869

Cloud mining service Nicehash returned 60% of the bitcoins stolen as a result of the platform hacking in December 2017. This is reported by Bitcoin.com.

After hacking, the company lost 4700 BTC, but immediately announced that it would return all stolen funds to customers, and gradually fulfills its promise. As part of this process, Nicehash charges a portion of the stolen coins monthly.

Law enforcement authorities meanwhile continue to investigate the incident. Representatives of the local police emphasize that such incidents are always very complex and take a lot of time. Typically, hackers are abroad and operate from different parts of the world, and also resort to various tricks to hide their identity and location.

Recall that the hacking of the cloud-based mining service occurred on December 6, 2017. At the time of the theft, the value of assets reached $ 65 million.

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   166

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.