Bitcoin mining website "NiceHash" hacked. $62M stolen.

Bitcoin mining website "NiceHash" hacked. $62M stolen.

No, regulatory and insurance bodies are the devil and have never done anything but hold people back.

-/sub/bitcoin

Are they FDIC insured

Because it's not like they can get away with it. I mean, there must be some sort of government regulatory body overseeing.... Oh wait.

Why would we need to associate with governments when they'll all crumble anyway?

-/sub/bitcoin

If a hacker could go ahead and delete the balance on my mortgage that would be dope.

Wait wait wait, so a website had enough information/access to these wallets that someone was able to hack the website and empty them?

If NiceHash had that kind of information and access, then what is stopping NiceHash from just taking those coins themselves and claiming that they were hacked?

That's why I keep my bitcoins in a locked safe in a locked closet in my concrete basement.

And by bitcoins I mean mint condition 1st gen Pokemon cards.

This is good for bitcoin.

The Venn overlap between /sub/bitcoin and /sub/libertarian must be 100%.

So that's why my NiceHash wallet was empty this morning... shit

If NiceHash had that kind of information and access, then what is stopping NiceHash from just taking those coins themselves and claiming that they were hacked?

Literately nothing.

I swear to God Bitcoin is nothing but seeing how far the illusion of control can be used to leverage stupid people who think they're Gordon Gekko because they read half of F.A. Hayeks Wikipedia entry and can give you a completely incorrect definition of what stores of worth and deflationary currencies are.

When you think about it, theft is really just another kind of free market. /s

Best joke I've seen all day.

So this is the other side of the bitcoin.

the bitcoin was not hacked, the website was.

They didn't create counterfeit $100 or rob a bank, they picked your pocket and took your cash, and lots of people were carrying a lot of cash.

The site held wallets (that's actually what their called, and a good analogy) and the wallets were opened and the money taken out.

My student loans as well, pretty please!

Seriously though, how is bitcoin supposed to outlast all governments? It relies on the internet which I seriously doubt would continue to exist after society collapses.

It's against their rational self interest. Once they steal the $62,000,000 they will get lots of bad reviews and no one will mine with them anymore, so they won't be able to make anymore money until they start a new mining website under different names. It's the free market at work.

It's against their rational self interest. Once they steal the $62,000,000 they will get lots of bad reviews and no one

After stealing $62 mil I don't think they would give a flying fuck.

edit: Alright, alright ya got me. I suck at detecting sarcasm on the internet.

First we have pirates on the internet and now stagecoach robbery. What will happen next? Weather forecasts for cloud computing?

That’s $117,000,000 worth in crypto “hacked” in the last two months.

No big deal, right? 😐

They want this to be a currency, but you can’t hold or access it on-line, because that’s breaking the first rule of bitcoin?

Great product you’ve got there.

Yup. It's the same as if somebody broke in and stole bags of cash. It probably didn't all come from one person, though, it was probably a group of people.

Forgive me for this dumb question: So people who owned $62M of bitcoin yesterday don't anymore?

Like it's gone. They aren't getting it back.

You can drop the /s.

Not to sound like those crazy /sub/latestagecapitalism people, but theft is a natural externality of a zero-regulation system.

There is nothing /sub/latestagecapitalism about that. That statement is what any sane person should be saying.

There is a billion and a half things wrong with a pure free market with no regulation, bitcoin encapsulates all of those things. It's a fucking disaster, there is a reason nobody uses it as a real currency.

It isn't 1, but I'll eat my hat if there isn't a strong positive correlation.

And this is a primary argument against crypto. You shouldn't have to "know what you're doing". The system is far too complex for the average person to understand.

The issue is that you can't cash out until youve mined 0.01 BTC

...which is an amount that NiceHash knew only a very small percentage of their users would ever achieve - which means they essentially never have to give it up.

Most of their users were "hacked" from day one.

It doesn’t. Remember they made like 50 physical bitcoins? You just have to type in the serial number to your... oh.

Any PR is good PR

Doesnt matter. People on it broke the first rules of bitcoin. You don't keep coins or cash on an exchange unless its hot and ready to be used within a short period of time.

It did rain naked celebrity pictures that one time...

I thought everyone at /sub/bitcoin tells me this is unhackable cause of the blockchain ownership each step of the way.

My pogs are stored in mine. Those little cardboard circles will be worth millions!

This and the almost inevitable crash(es)...eventually.

That would be good for Bitcoin

Actually a lot of libertarians hate on /sub/bitcoin because they censor the discussion constantly... it is an echo chamber of people that have never actually tried sending Bitcoin and think the price can only go up, but they've completely distanced themselves from the intention of Bitcoin. They also discredit the "other" bitcoin which is Bitcoin Cash despite it having fees of $0.01 whereas Bitcoin has fees often for several dollars and long times to confirm. I won't say which one is better but I will say letting discussion happen so consensus can form... is what Bitcoin is supposed to be all about.

The other side can be found at /sub/btc and it is also biased but at least the mods don't go ban-crazy.

Well I'm sure the FDIC has their bac... Fuck.

It's likely that enough people left coins in their NiceHash account as they were mining, rather than withdrawing them to secure wallets.

And to answer your next question: Nothing was stopping them from stealing it, that's why you never leave large sums in "cloud" wallets.

ahhh nOOO me toooo

But it’s increasing in value by $1k/week! If that’s not the sign of a stable currency then I don’t know what is!

Mr.Robot

It's popular with anyone who cares about relative anonymity. That of course, means people who are using it for illegal purposes will like it more.

Begun, the Coin Wars have.

I'm not a believer in Bitcoin but how is it any different than your bank statements? Unless you have your assets in physical currency then it's the same exact thing if society collapses.

Me thinks you doth protest to much. You ain't got shit.

It's not. When it really comes down to it, bitcoins have the same degree of value that any other currency has: they're worth what people think they're worth. And a physical currency can at least continue to exist in a world without electricity and connectivity, but bitcoins and electronic money, and probably paper money would all cease to be of any value.

Money, as best we know, started with gold. Gold was abundant in the right quantity to make a decent currency. It was unusually heavy and soft, so it could be reasonably tested for legitimacy, and it was beautiful to boot.

But then we made paper money. For a long time paper money was tied to gold. You could literally redeem your paper money for gold. But nations grew older and more fiscally prudent, and eventually the governments IOU for gold was just as reliable as the gold itself. So now we have a currency that is free floating from the value of gold.

And in the last few decades we've involved computers. And this part is beyond my understanding a tad, but when it comes down to it, a bitcoin is still just an electronic form of artificial scarcity. As long as that scarcity is maintained in the right portions, bitcoins have value. But with electronic currency, the funds have to also be accessible. It's not enough to have your laptop with you, you have to be able to use that computer to access and then move those funds around. Without that, bitcoins are worthless.

And all the people who had the money there temporarily while in the process of exchanging it? Are they the bad guys now too?

The fact that you think your post even makes sense is disgusting. Your finances should not resemble the wild west, where you can spontaneously lose all of your money with absolutely zero recourse or legal protections. "But you shouldn't have stored it in this account!" shouldn't be an excuse. If you want to store peoples money like a bank, you should be beholden to the same consumer protection regulations. If not, stop pretending bitcoin is a real fucking currency. Because it isn't.

blame user behavior. thats like blaming physical money from being stolen out of a purse laid carelessly on the ground

We don’t need any government regu—where is my money? What do you mean it is gone? Like forever? Can’t get it back?... ever?

I lost about 8 bucks I hadn't gotten paid for yet after switching to a NH wallet for payment. The real shady thing about this is that they spent the past several months promoting their own wallets increasing the minimum balance thresholds 10x for external ones. Until recently, I've used an external wallet, which is one of the only reasons I felt safe using NH. After they paid me, I didn't have to give them a 2nd thought, they didn't even know my email address.

I might be able to get my balance, because they hadn't actually put money into my account yet, but considering the circumstances surrounding this hack, I doubt they're even considering being able to continue as a business, and as a result their going to tell their sellers to go F themselves.

Sorry to hear you lost money.

more like it's at the bank in your bank account only your shitty bank doesn't insure its accounts. He who holds the cash owns the cash!

Pretty sure Mr Robot has a plan for that.

If society collapsed to the extent that bitcoin was inaccessible, we'll all have much bigger problems.

I kinda think that was the point...

The worst part is, bitcoin enthusiasts recommend storing your own private keys, in lieu of using a bank. Guess what happens if you lose your wallet seed? All of your money disappears, and not even NSA can get it back.

Amazingly, people like this idea under the premise that it's okay if you lose your life savings, so long as it can be reasonably construed as your fault.

Translation: the insult bothered you.

The issue is that you can't cash out until youve mined 0.01 BTC (I think that was the number). So I personally had about $80USD in there that was stuck. Still probably not the smartest way to be mining, but it got me great results compared to other options I tried. I'm sure some people had a lot more on there, but I was planning to cash out as soon as I could.

read half of F.A. Hayeks Wikipedia entry and can give you a completely incorrect definition of what stores of worth and deflationary currencies are.

Most strained insult of the year.

I mean I've seen my Bitcoin value go up 13.96% in the last 24 hours... so maybe you're on to something.

EDIT: Make that 21.46%, just checked again.

YOU HAVE POGS?!?!

The prophecy foretold that One would remain, the Holder of the Pogs.

Hail Pogs!

The transfers are actual transfers.

Bitcoin doesn't give a flying fuck who owns what coins - the blockchain just makes sure no fake transfers happen.

This "currency" is one of the best currencies if you're looking to rob people and get away with it. It's also really popular on the dark net for pedophiles.

Coinbase is. Regardless, one of the main ideas behind bitcoin is to be your own bank. Storing your bitcoin on a website is dumb.

Transactions in BTC are immutable. There are no refunds

There's a lot of misinformation being spread in here in an attempt at humor and to make fun of the people who invest in bitcoin.

People's wallets weren't hacked. NiceHash is a mining operation. People rent their mining equipment much like someone rents a server for their website (i.e. they're not physically renting equipment, they're paying the company to use the equipment in their name.)

NiceHash holds the bitcoin until you reach a certain amount and you request that it is transferred to your personal wallet. That's the way it's supposed to work at least. A lot of people are using these services to actually store their bitcoin though, which is a huge risk and a big no-no in the cryptocurrency community.

Hackers did not access the users bitcoin wallets through NiceHash. The hackers stole the bitcoin NiceHash was holding for people.

Moral of the story: Don't take the easy way. Secure your bitcoin yourself, the way it was intended to be. Don't pay someone to do it all for you. Invest in your own mining equipment (physical equipment that you plug into your own wall) if you really want to mine. Or just buy bitcoin and put it in your own wallet.

YOU ARE 100% RESPONSIBLE FOR YOUR BITCOIN. SECURE IT YOURSELF, KEEP YOUR WALLET PASSWORD SAFE. DO NOT TRUST A COMPANY TO TAKE CARE OF IT FOR YOU. ALL IT TAKES IS FOR ONE PERSON IN THAT COMPANY TO FUCK UP AND YOU'LL LOSE IT.

And adults with the emotional maturity of a kid. The kind that admire Ayn Rand.

No really. Pick any random person in the population and see how long it takes you to teach them how to use Bitcoin safely. A large percentage of the population isn't going to have the tech savvy necessary.

Smh it's crazy. That bitcoin subreddit is filled with people spending their only 300$ on bitcoin and then circlejerking each other. I mean great, your 300$ is now 600$, but dont pretend like your Rothschild.

well I mean he can't because he is lying but nice thought.

I think bottlecaps would be a viable form of currency in a post-apocalyptic world

Can you still call it a currency when nobody is spending it?

Damn, it's been a while since I thought of Dennis Miller...

No you didn't. The value of your wallet increased that much. Until you cash out you have made fuck all.

This perfectly summarized my personal feelings about Bitcoin. I loved the concept initially and fully support a worldwide digital currency, but bitcoin no longer seems to represent that idea. Nowadays it seems to be a way for investors to think they are making a quick buck, it feels reminiscent of the economic crisis due to the perceived value of tulip bulbs in the Netherlands way back. Yes, I understand that there are tons of differences between this situation and that, but the rapid growth in value, coupled with the fact it is based around a currency we are all saying is worth the value, even though we haven’t seen any real growth in its usage worldwide.

If I had $10 million in bitcoin right now, I don’t know how I would use other than hoping to sell it to someone else for straight cash. The more people who buy it and sit on their bitcoins with the belief that it will simply increase in value, the more potential damage that a major crash could have and end up destroying millions of dollars in wealth.

Feel free to ignore this next part because it is purely speculation and personal opinion, but when we see our next major market correction, I would expect to see a major loss in bitcoin. We’ve enjoyed nearly 10 years of consistent growth in the world of investing and I think the confidence in Bitcoin is a product of it.

I can only sit and hope that Bitcoin ends up being a success story rather than a cautionary tale.

Even if the wallet got hacked, that transfer or transaction needs to go back into the decentralized ledger...how does this even get reconciled?

I was looking to get into mining and nice hash was something I considered thank God I waited to pull the trigger

Oh yeah, those coins are in somebody else's wallet now and they're not getting them back

Yup, that's a totally fair argument. But it's not like they hide that, you know the minimums when you sign up. I decided to stick to it since I made about ~30% more using their switching algo.

Spoiler : There isn't.

And it's never going to leave it's infancy. If people had a small chance to lose all their money simply by transferring money into a new bank account, banks would cease to exist over night.

It's also really popular on the dark net for pedophiles.

So is encryption. Should we be concerned about encryption?

Blah blah blah, you know what I wouldn't be doing if I had made 475k in profit on bitcoin? Talking about it to strangers on the internet.

Well the servers that house bitcoins seem less secure than your average bank. I think that's the problem, but I'm no expert.

It doesn't work that way. Once transferred, it's on the blockchain and written in stone. He who owns the keys, owns the bitcoin. Nicehash owned the keys, someone broke in and stole them, then transferred the coins.

I used my $300 profit to buy a fart can for my Ford Focus, how dare you talk down to your betters.

FUCK. And they changed their cashout policy so I can't even cashout until I had .01 btc or something.

We don’t need any government regu—where is my money? What do you mean it is gone? Like forever? Can’t get it back?... ever?

Personal accountability. You don't need the government to hold your hand when you store your bitcoin in a private wallet.

"And on Friday we can expect another celebrity nude leak followed by shitposting into the weekend."

the problem with NiceHash is they changed their cash out policy and made this loss MUCH worse than it needed to be

Oh I didn't realize they changed their cash-out. That turns this hack into a "hack"

You kids would say that if news broke that child prostitution rings were using Bitcoin for transactions.

Nothing. See mtgox and btc-e for example.

There is nothing ensuring that these exchanges are solvent, do not steal etc.

But the first rule of working with crypto is never store your crypto in a wallet you do not control.

If people kept large sums of BTC on the exchange for longer than it took to move things around, they made a mistake.

There are infinite ways to safely store your coins, including hardware wallets that are cheap now. The harder part is the government backed currency like USD or euro.

yes, it does.

people are forced to keep their mining sums on there until nicehash pays out, nothing you can do about that. now if you had large sums in the nicehash wallet...thats REAL dumb

The difference is that the average user of fiat currency isn’t being insufferably pretentious about how their currency will outlast governments.

thats the thing, common sense dictates not leaving your shit in an online wallet until protections like insurance enter the picture. its really fucking DIY right now and I would argue that if done right you would maintain stronger security habits than what you would have around traditional assets. Lets not pretend like identity theft is not a big fucking issue.

Yes a serious problem is that people want to invest in Bitcoin because it seems like a good investment, but an increasing in value Bitcoin is contradictory with it's needs as a currency which is to be stable.

The idea of a blockchain is revolutionary and Bitcoin introduced the concept, but it didn't necessarily perfect it... Proof of Work to validate transactions is already using more global power than some small countries, can you image how much it would be if Bitcoin continues to scale? Computing power to secure the network needs to scale linearly with value of the network which is unsustainable.

The blockchain will take years to perfect, and it will needs tons of brilliant developers. What you want is a general purpose blockchain that allows all kinds of applications to be built on it, even tokens that governments and other institutions can financially back that will have stability and be usable as currencies.

Which encourages you to spend it and expands the economy, as any currency should. Bitcoin is a speculative investment vehicle.

And VPNs. There's no legitimate reason to use a VPN unless you're trying to hide something. VPN users, all pedophiles.