Millions May Be Missing in Bitcoin Heist
Theft prompts shutdown of NiceHash, which markets itself as the largest cryptomining marketplace
A major bitcoin theft from a cryptocurrency-mining service called NiceHash has prompted it to shut down for at least 24 hours.
The hack was disclosed on NiceHash’s Facebook page.
“We are working to verify the precise number of [bitcoin] taken,” NiceHash said.
The virtual currency’s furious rally continued, with the price surging through $14,000 for the first time Thursday morning in Asia, according to research site CoinDesk. Bitcoin’s rise from around $1,000 at the start of the year—including a 40% jump in the past week alone—has attracted crowds of eager small-timer investors to what had been a curiosity for techies.
A wallet address, which stores bitcoin, showed that about 4,736.42 of the digital currency had been stolen, according to CoinDesk. At $14,000 apiece, they would be worth about $66 million. A company executive wasn’t immediately available to comment and confirm that amount.
NiceHash, which markets itself as the largest crypto-mining marketplace, said it is investigating the breach and co-operating with authorities as it seeks to restore the service “with the highest security measures at the earliest opportunity.”
The price of bitcoin crossed $13,000 on Wednesday, mere hours after breaching $12,000 for the first time and just a week after it first broke above $11,000. Three exchanges are set to offer futures contracts on bitcoin, another step toward building a traditional market around the stateless digital currency.
NiceHash, based in Slovenia, matches people in need of computer-processing power to mine cryptocurrencies with people who have power to spare. Payment is made in bitcoin. The company advised users to change their passwords.
“We are truly sorry for any inconvenience that this may have caused and are committing every resource towards solving this issue as soon as possible,” NiceHash said.
Security has been an issue with bitcoin for years. One of the best-known cautionary tales is that of Mt. Gox, once the world’s largest bitcoin exchange. It collapsed and filed for bankruptcy protection after losing virtual currency valued at hundreds of millions of dollars in 2014.