Bitcoin marketplace NiceHash halts operation after losing over $60 mn in hack

Bitcoin

NiceHash, a cryptocurrency mining market, has become a victim of hackers, who wiped out its Bitcoin wallet causing loss of over $60 million.

The loss is about 4,736.42 Bitcoins, worth more than $60 million, said a report of Coindesk.

The marketplace issued a statement saying they are investigating to trace the hackers.
The company also recommended users to change their passwords – both on NiceHash and other services. Many users tweeted about the incident.

Nicehash

Earlier last week, the Reserve Bank of India (RBI) this week cautioned the users, holders, and traders of Bitcoins about the security-related risks associated with dealing with such virtual currencies (VCs). A committee set up by the Finance Ministry had reportedly recommended banning cryptocurrencies over fears that they could be used to launder money and perpetuate frauds.

Hacking Incidents

This is not the first incident of hacking involving bitcoin. In July this year, a Bengaluru-based data scientist’s Bitcoin account on Unocoin was hacked, and he lost Rs 1.2 lakh, claimed a FactorDaily report.

In August, many users had reported unauthorised transfers of 0.25 BTC from their Unocoin accounts. Unocoin, which claims to have more than 150,000 users, had gone offline after it discovered a security vulnerability on its servers.

Outside India, South Korean Bitcoin and Ether exchange Bithumb, one of the largest exchanges in the world, got hacked resulting in loss of more than $1 million in cryptocurrencies.

Bitcoin surge in India

Bitcoin Graph

Bitcoin has been on a bull run and recently crossed the $12,000 mark reaching an all-time high price. During demonetisation period (announced on Nov 8), Bitcoin had gained ground in India and saw a rise in transaction volumes.


Also Read: Bitcoin soars all-time high: Why RBI is warning investors to not bet on cryptocurrency


Some of the top-funded, VC-backed cryptocurrency exchanges include San Francisco-based Coinbase, Tokyo-based Bitflyer, and London-based Bitstamp. In India, Coinsecure, Zebpay and Unocoin have secured VC funding.

Around 3,600 new bitcoins are created a day – with about 16.5 million now in circulation from a maximum limit of 21 million. Earlier in the day, the value of one Bitcoin had crossed $14,000, a new record high for the cryptocurrency.

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