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There's some discussion going on a reddit thread, and people there seem to think this is an inside job https://www.reddit.com/r/NiceHash/comments/7i0s6o/offici

by ktta 9y ago

There's some discussion going on a reddit thread, and people there seem to think this is an inside job https://www.reddit.com/r/NiceHash/comments/7i0s6o/official_press_release_statement_by_nicehash/ https://www.reddit.com/r/NiceHash/comments/7i0s6o/official_p...

pjc50 9y ago
One of the great things about bitcoin is that unless someone confesses we'll probably never know if it was an inside job. Do we even know who runs nicehash and in which country?
- adrr 9y ago
  I always wondered how the hackers can get the money out of bitcoins to a fiat currency without exposing who they are. If they transfer it to an exchange, the exchange will know where the bitcoins came from being that transactions are open for everyone to see.
  - pmorici 9y ago
    In the case of past thefts high level executives of a Bitcoin exchange were in on the hack and facilitated laundering the stolen coins. https://www.reuters.com/article/us-greece-russia-cyber-extradition/greek-court-clears-u-s-extradition-of-russian-bitcoin-fraud-suspect-idUSKCN1C90QR https://www.reuters.com/article/us-greece-russia-cyber-extra...
  - ktta 9y ago
    They usually don't. They just stay in the attacker's addresses. I would say the best way to go would be to using bitcoin mixing services, but then the attacker would open themselves upto a huge risk of getting caught if the mixing wasn't perfectly secure, when they eventually go to an exchange.
  - volker48 9y ago
    There are a few ways I can think of. The first address they send the hacked coins to (a1) will most likely be black listed by some exchanges. However, the hackers could create thousands of new addresses and transfer the coins from a1 to the new addresses. Then do that again. All exchanges would have to monitor all addresses that a1 ever sent coins to. They could do this, but I'm not sure how many exchanges would actually do this. All it takes is one exchange to accept the hacked coins then the hacker can sell the BTC for something like ETH. Another option would be OTC trades, but that would take a really long time to sell 4000 BTC.
- gt_ 9y ago
  I looked it up before I started mining with them and concluded they were based in Amsterdam. Incase you’re wondering, I lost approx. $120.
  - mlamat 9y ago
    They are a Slovenian company.
- avian 9y ago
  Never heard about NiceHash before, but this story is currently being reported by Slovenian national media and NiceHash is presented as a Slovenian company.
Cyberdog 9y ago
The comment on their web site says that their payment system was compromised. If so, that means they had $64 million worth of bitcoin connected to their public-facing web site. So I actually kinda hope for their sake it was an inside job, because that would be a lot less stupid.

by ktta 9y ago

pjc50 9y ago

One of the great things about bitcoin is that unless someone confesses we'll probably never know if it was an inside job. Do we even know who runs nicehash and in which country?

adrr 9y ago
I always wondered how the hackers can get the money out of bitcoins to a fiat currency without exposing who they are. If they transfer it to an exchange, the exchange will know where the bitcoins came from being that transactions are open for everyone to see.
- pmorici 9y ago
  In the case of past thefts high level executives of a Bitcoin exchange were in on the hack and facilitated laundering the stolen coins. https://www.reuters.com/article/us-greece-russia-cyber-extradition/greek-court-clears-u-s-extradition-of-russian-bitcoin-fraud-suspect-idUSKCN1C90QR https://www.reuters.com/article/us-greece-russia-cyber-extra...
- ktta 9y ago
  They usually don't. They just stay in the attacker's addresses. I would say the best way to go would be to using bitcoin mixing services, but then the attacker would open themselves upto a huge risk of getting caught if the mixing wasn't perfectly secure, when they eventually go to an exchange.
- volker48 9y ago
  There are a few ways I can think of. The first address they send the hacked coins to (a1) will most likely be black listed by some exchanges. However, the hackers could create thousands of new addresses and transfer the coins from a1 to the new addresses. Then do that again. All exchanges would have to monitor all addresses that a1 ever sent coins to. They could do this, but I'm not sure how many exchanges would actually do this. All it takes is one exchange to accept the hacked coins then the hacker can sell the BTC for something like ETH. Another option would be OTC trades, but that would take a really long time to sell 4000 BTC.
gt_ 9y ago
I looked it up before I started mining with them and concluded they were based in Amsterdam. Incase you’re wondering, I lost approx. $120.
- mlamat 9y ago
  They are a Slovenian company.
avian 9y ago
Never heard about NiceHash before, but this story is currently being reported by Slovenian national media and NiceHash is presented as a Slovenian company.

Cyberdog 9y ago

The comment on their web site says that their payment system was compromised. If so, that means they had $64 million worth of bitcoin connected to their public-facing web site. So I actually kinda hope for their sake it was an inside job, because that would be a lot less stupid.