[Updated w/ Statement NH] NiceHash breached, resulting in a loss of $60 Million Dollars

[Matu20]

6 hours ago, apm said:

securing your shit isnt new tho.

True, but people need to learn the process.

[Storytellar]

8 minutes ago, Cyracus said:

banks are institutions, they're regulated, they're liable if your money disappears, crypto lockers aren't. I meant like handing your money to just any random person you happen to see on the street, not an agent of a business that's legally liable to you

It was clearly a joke.. 

[Cyracus]

1 hour ago, Storytellar said:

It was clearly a joke.. 

sorry, missed the inflection

[mr moose]

The only reason I don't invest in digital currency is because it is not tied to any material commodity in any way shape or form. When you invest in a company your are investing in an entity that has a root value (material presence) and it's potential to grow is driven by more than just consumer demand.  But with digital currency, it's value is dictated solely by S/D and that S/D is only driven by human interest.  If people get cold feet it loses it's value, If people stop buying a specific product the company producing it still has a hard value and can produce something different.

 

 

[vorticalbox]

12 hours ago, The Benjamins said:

people need to learn to not use Cypto currencies like Fiat, you shouldn't use a service like a bank, keep your coins in your personal wallet that only you manage. only use these services as a middle man like mine, then withdraw regularly or for a exchange deposit, exchange withdraw.

 

I keep all my Crypto in personally controlled wallets. you can only blame yourself if you lose money.

Problem is I can't be bothered to actually run a wallet locally. What if I want to move my wallet yo another computer? Or access that wallet while I'm out?

 

I personally use blockchain.info works well and lets me access from what ever device I like. 

[Tcrumpen]

I don't know why but when i saw this article this game to mind:
 

 

[Mihle]

I lost about 73 $ that wasn't paid out. my next payout would have been in January/February (I mine slow).

 

Only possibility for me to go back to Nicehash if they lower the limit to get paid out to external wallet, even if it would mean I paid more fees.

[dfsdfgfkjsefoiqzemnd]

9 hours ago, wkdpaul said:

I personally used an external wallet because I always knew it was safer, good thing I was paranoid and didn't used NH solution

Same here, I always used my blockchain.info wallet for NH payments and periodically transferred the contents of that wallet to my hardware wallet. 

 

All I had on NH is the amount that I mined since the last payout, which was around 0.006-0.007 BTC by the time they went offline.  Seeing as that's due payment and not even in a wallet, I'm not sure if I actually lost it.  It may very well still be there when NH comes back online. 

If it's gone ... oh well, I'll just mine it again.  Not going to be mad at NH about it, I'll happily keep selling my hashing power to them.

 

 

[GOTSpectrum]

NiceHash use an insured wallet provider.

 

 

https://webcache.googleusercontent.com/search?q=cache:LV7jr0XYDgoJ:https://www.nicehash.com/news/31+&cd=4&hl=en&ct=clnk&gl=fr

 

I have to say this looks promising if they still do business this way.  We could actually see our BTC returned to us. Although I still think its unlikely.

[The Benjamins]

4 hours ago, vorticalbox said:

Problem is I can't be bothered to actually run a wallet locally. What if I want to move my wallet yo another computer? Or access that wallet while I'm out?

 

I personally use blockchain.info works well and lets me access from what ever device I like. 

You can sync wallets to the same address. And I think blockchain.info gives access to the private key so if you back that up you are safe. I use mycelium on my phone as my main wallet.

[Juanitology]

16 hours ago, The Benjamins said:

people need to learn to not use Cypto currencies like Fiat, you shouldn't use a service like a bank, keep your coins in your personal wallet that only you manage. only use these services as a middle man like mine, then withdraw regularly or for a exchange deposit, exchange withdraw.

 

I keep all my Crypto in personally controlled wallets. you can only blame yourself if you lose money.

How can you guarantee that your personal wallets won't get hacked though? Especially if you have a substantial amount of BTC in it.

[The Benjamins]

18 minutes ago, Terodius said:

How can you guarantee that your personal wallets won't get hacked though? Especially if you have a substantial amount of BTC in it.

it depends how you secure them. you can create a paper wallet which is the private address written down and lock it in a safe. and if it was created on a non network attached PC or you do the math yourself to make it then it is impossible for some one to "hack" it unless they break into your house.

 

So I use 2 wallets, one is a paper wallet used as cold storage in my safe, and the other is a wallet on my phone with its private key backed up on paper in the safe.

 

All you need in a BTC wallet to get access is the Private key (think of that as a password), and the Public key is what you give people to send money too (username)

 

Here is a real BTC wallet keys

Public

1LnYYkYJeJuz94NX8KJLLeE2DbYcrEdUh8

Private

5JHPr2HRjmaKh2goJkTY4ca9DtvpRaFtXsCpY1ZfXsKaE4hmB9M

 

was made on https://brainwallet.io/

set to generic

passphrase: hello

salt: hi

 

You can download brainwallet from the Github and run it on a offline PC or VM or locally and create a unique address now.

[Droidbot]

18 hours ago, The Benjamins said:

people need to learn to not use Cypto currencies like Fiat, you shouldn't use a service like a bank, keep your coins in your personal wallet that only you manage. only use these services as a middle man like mine, then withdraw regularly or for a exchange deposit, exchange withdraw.

 

I keep all my Crypto in personally controlled wallets. you can only blame yourself if you lose money.

Their withdrawal is $100us in btc, btw. 

 

So that takes a while to hit with a single GPU, hence why this is a big deal 

[The Benjamins]

4 minutes ago, Droidbot said:

Their withdrawal is $100us in btc, btw. 

 

So that takes a while to hit with a single GPU, hence why this is a big deal 

then this does not sound like a safe mining pool to use.

[WkdPaul]

seems like the NH wallets were insured ... can't find the link right now. I'll try to find it again and post it later today.

[Klovnious]

2 minutes ago, wkdpaul said:

seems like the NH wallets were insured ... can't find the link right now. I'll try to find it again and post it later today.

This?

https://webcache.googleusercontent.com/search?q=cache:LV7jr0XYDgoJ:https://www.nicehash.com/news/31+&cd=4&hl=en&ct=clnk&gl=fr

[GOTSpectrum]

2 hours ago, Ben Quigley said:

NiceHash use an insured wallet provider.

 

 

https://webcache.googleusercontent.com/search?q=cache:LV7jr0XYDgoJ:https://www.nicehash.com/news/31+&cd=4&hl=en&ct=clnk&gl=fr

 

I have to say this looks promising if they still do business this way.  We could actually see our BTC returned to us. Although I still think its unlikely.

 

5 minutes ago, wkdpaul said:

Snip

I sent the link a couple hours back.

[The Benjamins]

6 minutes ago, wkdpaul said:

seems like the NH wallets were insured ... can't find the link right now. I'll try to find it again and post it later today.

 

3 minutes ago, Klovnious said:

This?

https://webcache.googleusercontent.com/search?q=cache:LV7jr0XYDgoJ:https://www.nicehash.com/news/31+&cd=4&hl=en&ct=clnk&gl=fr

If this is true that is awesome, BUT will BitGo be able to fix it and pay back everyone.

[WkdPaul]

Just now, Ben Quigley said:

 

I sent the link a couple hours back.

Thanks, saw it on Reddit this morning but couldn't find it anymore!

[ItsMitch]

8 minutes ago, wkdpaul said:

seems like the NH wallets were insured ... can't find the link right now. I'll try to find it again and post it later today.

I doubt they'll pay the 61 million back, let's be real here.

[GOTSpectrum]

Just now, wkdpaul said:

Thanks, saw it on Reddit this morning but couldn't find it anymore!

This link is from a couple years ago, but a reddit user(whos name I can't find) claims he asked Nicehash a couple months ago, and they were still using this solution. 

[Droidbot]

13 minutes ago, The Benjamins said:

then this does not sound like a safe mining pool to use.

yeah I figured that pre quick and ran far far away. 

 

It's much easier than mining alts then just converting back to btc for cold storage though

[GOTSpectrum]

Just now, SC2Mitch said:

I doubt they'll pay the 61 million back, let's be real here.

That's kinda how insurance works... as long as it isn't the clients fault anyway. 

[ItsMitch]

Just now, Ben Quigley said:

That's kinda how insurance works... as long as it isn't the clients fault anyway. 

It can be argued to the moon that client was at fault for not securing the funds, why would you keep a ridiculous amount of money online when it can be easily taken in a very volatile area such as BTC

[The Benjamins]

1 minute ago, SC2Mitch said:

I doubt they'll pay the 61 million back, let's be real here.

here is a funny thing that is happening about the MTGOX issue, when they went bankrupt now they settled and are going to pay back everyone back the money lost BUT at $500~ per BTC. now everyone is mad that they would of made 10x if they still had it. and the idea if its a inside job means they would of made 9x.

 

so if this becomes a legal issue it will be dealt in the country of origins currency not BTC which means they can get off luck in 1-2 years recovering some of the BTC and making out with money left over as profit.