Jump to content

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

ItsMitch
3 minutes ago, SC2Mitch said:

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

this is why big exchanges like coinbase, bitstamp do regular internal and external audits.

if you want to annoy me, then join my teamspeak server ts.benja.cc

Link to comment
Share on other sites

Link to post
Share on other sites

Just now, SC2Mitch said:

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

It depends, the insurance will have a clause most likely saying what percent should be online at any time. This will be for BitGo though, so even if nicehash lost 100% of funds, it may only be 5% of BitGos reserves. (numbers pulled from thin air)

 

BitGo will know NH needs quick access and thus may have kept theirs 'Hot' to ensure they have no service issues. Then you also have to look into does BitGo offer protect in their contract to their clients. If so, then they may likely have to pay up even if the insurance doesn't. 

My Folding Stats - Join the fight against COVID-19 with FOLDING! - If someone has helped you out on the forum don't forget to give them a reaction to say thank you!

 

The only true wisdom is in knowing you know nothing. - Socrates
 

Please put as much effort into your question as you expect me to put into answering it. 

 

  • CPU
    Ryzen 9 5950X
  • Motherboard
    Gigabyte Aorus GA-AX370-GAMING 5
  • RAM
    32GB DDR4 3200
  • GPU
    Inno3D 4070 Ti
  • Case
    Cooler Master - MasterCase H500P
  • Storage
    Western Digital Black 250GB, Seagate BarraCuda 1TB x2
  • PSU
    EVGA Supernova 1000w 
  • Display(s)
    Lenovo L29w-30 29 Inch UltraWide Full HD, BenQ - XL2430(portrait), Dell P2311Hb(portrait)
  • Cooling
    MasterLiquid Lite 240
Link to comment
Share on other sites

Link to post
Share on other sites

So, @LinusTech and @GabenJr... What are you going to say with that follow-up mining video now? You were running on NH's network, right?

 

 

F#$k timezone programming. Use UTC! (See XKCD #1883)

PC Specs:

Ryzen 5900x, MSI 3070Ti, 2 x 1 TiB SSDs, 32 GB 3400 DDR4, Cooler Master NR200P

 

 

Link to comment
Share on other sites

Link to post
Share on other sites

3 minutes ago, Qub3d said:

So, @LinusTech and @GabenJr... What are you going to say with that follow-up mining video now? You were running on NH's network, right?

 

 

well they will just move to the big boy game and mine alt coins, they did mention they wanted to look into that too so now they have too. but honestly its not that hard.

if you want to annoy me, then join my teamspeak server ts.benja.cc

Link to comment
Share on other sites

Link to post
Share on other sites

8 minutes ago, Qub3d said:

So, @LinusTech and @GabenJr... What are you going to say with that follow-up mining video now? You were running on NH's network, right?

 

 

I'm sure you'll find out on Friday's WAN show. with a single D3, they weren't grossing very damn much, I can tell you that much.

[FS][US] Corsair H115i 280mm AIO-AMD $60+shipping

 

 

System specs:
Asus Prime X370 Pro - Custom EKWB CPU/GPU 2x360 1x240 soft loop - Ryzen 1700X - Corsair Vengeance RGB 2x16GB - Plextor 512 NVMe + 2TB SU800 - EVGA GTX1080ti - LianLi PC11 Dynamic
 

Link to comment
Share on other sites

Link to post
Share on other sites

I'm not overly all mad about this, i only lost about $6-10 CAD :P I pulled out most of my funds a few days earlier for CryptoKitties lol...

 

DGB Mining till i can find and mine a decently profitable coin... When i have time that is...

 

But damn @LinusTech likely lost some decent money with their rig if they didn't pull out in frequently...

 

They were likely pulling down close to $20+ a day, money lost is still money lost :P

Link to comment
Share on other sites

Link to post
Share on other sites

i was gonna say... if LTT wasn't pulling money out of the nicehash wallet they had to have lost nearly a grand or so

"If a Lobster is a fish because it moves by jumping, then a kangaroo is a bird" - Admiral Paulo de Castro Moreira da Silva

"There is nothing more difficult than fixing something that isn't all the way broken yet." - Author Unknown

Spoiler

Intel Core i7-3960X @ 4.6 GHz - Asus P9X79WS/IPMI - 12GB DDR3-1600 quad-channel - EVGA GTX 1080ti SC - Fractal Design Define R5 - 500GB Crucial MX200 - NH-D15 - Logitech G710+ - Mionix Naos 7000 - Sennheiser PC350 w/Topping VX-1

Link to comment
Share on other sites

Link to post
Share on other sites

Just now, Sparkznz said:

Hoping for an update to their losses eh

If I hear anything from a reputable source on any updates I'll post it in here so don't worry.

Link to comment
Share on other sites

Link to post
Share on other sites

3 hours ago, Qub3d said:

So, @LinusTech and @GabenJr... What are you going to say with that follow-up mining video now? You were running on NH's network, right?

I'm not really involved in the mining thing outside of benchmarking hardware with it - That's more @jakkuh_t's wheelhouse. Personally, I kind of think cryptocurrencies in general are kind of dumb, and as a result, I can only offer broad-strokes opinions like "cryptocurrencies in general are kind of dumb", "Bitcoin is clearly a bubble that's about to burst" and "every time a coin dies, another takes its place and the cycle continues without anybody learning any lessons".

 

But there are some people here who are hardcore into it, so I try not to mock them over it. I merely doomsay every time Bitcoin shoots up another few thousand bucks in 24hrs.

Emily @ LINUS MEDIA GROUP                                  

congratulations on breaking absolutely zero stereotypes - @cs_deathmatch

Link to comment
Share on other sites

Link to post
Share on other sites

1 hour ago, GabenJr said:

I'm not really involved in the mining thing outside of benchmarking hardware with it - That's more @jakkuh_t's wheelhouse. Personally, I kind of think cryptocurrencies in general are kind of dumb, and as a result, I can only offer broad-strokes opinions like "cryptocurrencies in general are kind of dumb", "Bitcoin is clearly a bubble that's about to burst" and "every time a coin dies, another takes its place and the cycle continues without anybody learning any lessons".

 

But there are some people here who are hardcore into it, so I try not to mock them over it. I merely doomsay every time Bitcoin shoots up another few thousand bucks in 24hrs.

Yea but what happened to your mining rig? Did you lose all the money? How much has it/did it make?

Link to comment
Share on other sites

Link to post
Share on other sites

Apparently they're starting a livestream in a couple of minutes to discuss the situation.  Can't watch it because I don't have (or want) facebook, but might be interesting for someone else.

 

EDIT: Watched it via a Twitch channel.  Not much news due to the ongoing legal investigation, but it sure sounds like they plan resume normal service soon.

 

 

Link to comment
Share on other sites

Link to post
Share on other sites

On 12/6/2017 at 8:57 PM, The Benjamins said:

its so simple to set up a day to day wallet on a phone, and a cold storage wallet (paper wallet) in a safe or something. and have a written back up in a other location like a safety deposit box. it takes 5 min to do.

I'm quite sure writing a backup and store it in a safety deposit box doesn't take just 5 minutes, nor $0 (not to mention you are once again in the hands of others).

 

 

On 12/6/2017 at 9:23 PM, Cyracus said:

more like, do you give random strangers your wallet with up to thousands of dollars in it and just trust that you'll get it back with everything in it whenever you want?

Yes. It's called bank.

 

14 hours ago, Cyracus said:

banks are institutions

NiceHash is an institution. You are not getting anywhere with the term.

14 hours ago, Cyracus said:

they're regulated, they're liable if your money disappears,

Not fully, in several ways they aren't liable. However, you bring up an important point yourself: it's not being banks what makes them different. Banks are strangers you give your money to and expect to have it when you need it. That's how they are appeared, because they were actually safer than carrying your legal tender around.

The difference, hence, it's not in the concept, but in regulation (or lack thereof), a characteristic many crypto-enthusiasts present as an advantage. It's not banks that are any different, it's the government and its regulation that allowed them to be more trustworthy than a random dude with a good reputation. So yes, online wallets are "banks", except they only deal in these crypto-assets, and as these headlines continue they'll  either die out of mistrust or get regulated.

 

So, next time someone proposes "financial deregulation", think of whether you want your bank account to become like an online wallet :P 

 

 

21 hours ago, D Levy said:

Your being one sided if you think thousands of people didn't immediately try nicehash after seeing Linus' video about it.

Irrelevant. A lot of people may have heard about it for the first time in the video, and they may have checked it out. Deciding to try it is on their own, and trying it immediately without checking because some dude was using it on TV Youtube is just irrational. Although, you know, "trying out" is harmless. However, no one can lose anything significant by "trying out"; anyone with substantial losses did a bit more than trying, and at that point, again, the decision (one would like to believe) was based on actual information, not "I heard the name in a youtube video".

21 hours ago, D Levy said:

A big disclaimer and a heads up about immediately withdrawing the nicehash wallet would have been a huge help.

Based on? What special information did Linus have about it that would make him say that? In particular, what private information did he have on the security on the site to issue such warning? 

21 hours ago, D Levy said:

So don't give me shit people about not reading or researching. And yes, Being an INFLUENCER, Linus could have given us SAFETY TIPS in addition to the suggestion to using Nice Hash.

I'm sure you meant something by "influencer", you capitalized it and all, but the message must have got lost on the way... 9_9

I guess that was your way to avoid saying "expert" (or "EXPERT", as you would put it), since we all know he isn't. He's just a NiceHash user, like the forum members who used it. Or maybe you meant that his "FAMOUS", which for some irrational beings may mean he has some power over our decisions and/or we should weigh whatever he says more about topics in which he's not more "EXPERT" than any of us with an internet connection.

But, rationally, using a service without checking the terms and conditions and what they mean (remember: after checking, whether it was mentioned or not in a video is irrelevant, you have much better information at that point) because Linus showed in a video is like buying a particular yogurt because LeBron James was in the advert, or was eating it after a match. 

 

20 hours ago, D Levy said:

We can agree to disagree, it's called negligence.

No, "negligence" isn't when we agree to disagree :P Neither is it when a TV Youtube show talks about a topic in X minutes, explains the software they use, but doesn't make a particular comment that you, only ex-post, think could have prevented a lot of people from being victims of an unexpected event he might not have figured as well.

Negligence, for example, is when the surgeon forgets her tools inside your body.

 

20 hours ago, D Levy said:

If any of you are YouTubers and don't feel any responsibility to correct misinformation in one of your videos which caused a portion of your fans loss... then something is wrong with you.

If you don't feel that your money management decisions are yours alone, that the security of NH is their responsibility alone, and that stealing th emoney is the hackers' responsibility alone, and seek instead to disperse the blame, and especially your responsibility (=/= blame) onto others no matter how thin the case, something  is wrong with you. Something called "maturity".

 

Did Linus, at any point in the video, actively recommend using NH's wallet? Or is this all about him not using his DeLorean to go now re-record the video and add an ad-hoc warning?

 

19 hours ago, FlatBrokeRacing said:

when using nicehash it was easier and cheaper to use their internal wallet if you waited for a decent amount of return,

Did NicheHash provide any explanation for this difference? In other words, were they making money / cutting costs in any way by having people using their wallet? Otherwise, one could legitimately ask why they provided these incentives in the first place...

 

15 hours ago, DeadEyePsycho said:

EDIT: Bitcoin is going to get overthrown when all 21 million are in circulation as there will be no incentive to mine which is required for the network to work.

I thought the incentive to mine was getting payed, and why they would not get pay from newly generated bitcoins, they can still get the transaction fees.

Link to comment
Share on other sites

Link to post
Share on other sites

5 hours ago, Egg-Roll said:

They were likely pulling down close to $20+ a day, money lost is still money lost

as a D3 owner, no. not even close. They are not grossing that much a day. maybe if they had 3 or 4 of them...

[FS][US] Corsair H115i 280mm AIO-AMD $60+shipping

 

 

System specs:
Asus Prime X370 Pro - Custom EKWB CPU/GPU 2x360 1x240 soft loop - Ryzen 1700X - Corsair Vengeance RGB 2x16GB - Plextor 512 NVMe + 2TB SU800 - EVGA GTX1080ti - LianLi PC11 Dynamic
 

Link to comment
Share on other sites

Link to post
Share on other sites

48 minutes ago, knightslugger said:

as a D3 owner, no. not even close. They are not grossing that much a day. maybe if they had 3 or 4 of them...

They dont own a D3. Plus you're comparing a $2500 system to a $18,000 system.

 

My GPU (1070) produced $3+ a day. They had 3 so $9

They also had 4 1080's which should push about $15 a day (based on whattomine.com, but they showed the right price to what i got from NiceHash)

They also had 1 180Ti which once again should do $5.

These numbers are based on what i mined which was Equihash (likely BTG) There are more profitable ones right now that could double that.

So yes they likely pushed 20+ but now looking at the numbers it could be 30+

Tho not sure where they got $11 in profit in the video...  I might know but if true shame on Linus for including the fees.

Basically Linus is paying what i basically pay on average $0.12 per hour or about $5.75 CAD for 2000W 24h (not USD) which means he's likely tacking on the 4.92 per kW charge he likely gets via being a business in BC, he's a tech company with a server room the likelihood of consuming 46000kwh a month is high. That said idk how that fee works, but should never be included in any calculation.

 

5 hours ago, GabenJr said:

I'm not really involved in the mining thing outside of benchmarking hardware with it - That's more @jakkuh_t's wheelhouse. Personally, I kind of think cryptocurrencies in general are kind of dumb, and as a result, I can only offer broad-strokes opinions like "cryptocurrencies in general are kind of dumb", "Bitcoin is clearly a bubble that's about to burst" and "every time a coin dies, another takes its place and the cycle continues without anybody learning any lessons".

 

But there are some people here who are hardcore into it, so I try not to mock them over it. I merely doomsay every time Bitcoin shoots up another few thousand bucks in 24hrs.

What you don't like printing money? Jokes aside i agree bitcoin is in a bubble, like the housing market in Ontario, it will crash and when it does you and I will have our popcorn ready :)

However calling cryptocurrencies dumb is really a bad idea. Next to places like Nicehash it's by far the securest system for money transfers going, if you were to invest $100,000 in DOGE which doesn't get much lower that it is now your investment is safe and secure in its wallet, in fact it increases with BC value. You bank however is only insured up to i think $70,000 and doesnt stop someone hacking in and transferring money out, or stealing your online banking info to do so, even insurance has a max amount to pay out if multiple users are affected, making your $70,000 possibly lower. Now when BC crashes the money will become worthless but i can't see that happening any time soon.

 

If you think of it if Banks converted over to crypto and offered a % of the transaction fee to keep the network secure what would actually happen? Nothing, but making it more secure. The only issue is Tx limits per second. If they could make 100,000 transactions per second it would be a no brainer.

Link to comment
Share on other sites

Link to post
Share on other sites

Just now, Egg-Roll said:

However calling cryptocurrencies dumb is really a bad idea. Next to places like Nicehash it's by far the securest system for money transfers going, if you were to invest $100,000 in DOGE which doesn't get much lower that it is now your investment is safe and secure in its wallet, in fact it increases with BC value. You bank however is only insured up to i think $70,000 and doesnt stop someone hacking in and transferring money out, or stealing your online banking info to do so, even insurance has a max amount to pay out if multiple users are affected, making your $70,000 possibly lower. Now when BC crashes the money will become worthless but i can't see that happening any time soon.

 

If you think of it if Banks converted over to crypto and offered a % of the transaction fee to keep the network secure what would actually happen? Nothing, but making it more secure. The only issue is Tx limits per second. If they could make 100,000 transactions per second it would be a no brainer.

On the flipside, the popular cryptocurrencies vary WILDLY (see also: Yesterday's Bitcoin stretch from $13k to $17k)... Which is why Valve isn't accepting Bitcoin anymore. There's also the problem of wallet security, where a total loss could be as simple as losing the files.

 

... Not to say that I trust the banks more than I trust technology in principle. I just don't trust speculation. Instead of being currencies, they're being traded like stocks, which is frankly a horrifying prospect for anyone looking to use them as actual currency.

Emily @ LINUS MEDIA GROUP                                  

congratulations on breaking absolutely zero stereotypes - @cs_deathmatch

Link to comment
Share on other sites

Link to post
Share on other sites

5 minutes ago, GabenJr said:

On the flipside, the popular cryptocurrencies vary WILDLY (see also: Yesterday's Bitcoin stretch from $13k to $17k)... Which is why Valve isn't accepting Bitcoin anymore. There's also the problem of wallet security, where a total loss could be as simple as losing the files.

 

... Not to say that I trust the banks more than I trust technology in principle. I just don't trust speculation. Instead of being currencies, they're being traded like stocks, which is frankly a horrifying prospect for anyone looking to use them as actual currency.

As long as you have your private and public key, you always have access to your wallet no matter what. Not making a paper wallet (quite literally your keys on a piece of paper and stored securely) is a blunder that too many people make. That is no different than any other technology making use of public key encryption.

[Out-of-date] Want to learn how to make your own custom Windows 10 image?

 

Desktop: AMD R9 3900X | ASUS ROG Strix X570-F | Radeon RX 5700 XT | EVGA GTX 1080 SC | 32GB Trident Z Neo 3600MHz | 1TB 970 EVO | 256GB 840 EVO | 960GB Corsair Force LE | EVGA G2 850W | Phanteks P400S

Laptop: Intel M-5Y10c | Intel HD Graphics | 8GB RAM | 250GB Micron SSD | Asus UX305FA

Server 01: Intel Xeon D 1541 | ASRock Rack D1541D4I-2L2T | 32GB Hynix ECC DDR4 | 4x8TB Western Digital HDDs | 32TB Raw 16TB Usable

Server 02: Intel i7 7700K | Gigabye Z170N Gaming5 | 16GB Trident Z 3200MHz

Link to comment
Share on other sites

Link to post
Share on other sites

2 minutes ago, GabenJr said:

On the flipside, the popular cryptocurrencies vary WILDLY (see also: Yesterday's Bitcoin stretch from $13k to $17k)... Which is why Valve isn't accepting Bitcoin anymore. There's also the problem of wallet security, where a total loss could be as simple as losing the files.

 

... Not to say that I trust the banks more than I trust technology in principle. I just don't trust speculation. Instead of being currencies, they're being traded like stocks, which is frankly a horrifying prospect for anyone looking to use them as actual currency.

Yea, I'm not going to disagree with that, I just wonder what will happen come 2020 when it halves again... I doubt the coin can go much higher, even my trading site (linked above) increased their fees due to costs of BC.

http://www.bitcoinblockhalf.com/

 

I personally think Crypto transactions once the Tx/s is solved for Ether could be a viable way of removing the old way of money transfers.

Link to comment
Share on other sites

Link to post
Share on other sites

On 12/7/2017 at 3:53 AM, 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.

Nicehash is a hashpower selling/buying service. A lot of people have lost their unpaid balances from the power they sell, and they don't use the Nicehash wallets. I only use a couple of older gaming rigs to mine when I'm not gaming, and I had 0.009 of unpaid balance, which was literally hours away from payout to my external wallet. Not much, but a value that would have been over $150 USD at current exchange. It will take twice as long to cover the costs and break even again. It's only a hobby, but there are people who have lost their main source of income for a month.

One thing that has come out of this, I'm going to look at more involved mining techniques with more regular payouts to my wallet.

I haven't lost my mind, it's backed up on tape somewhere.

Link to comment
Share on other sites

Link to post
Share on other sites

Lol I didn't even know nicehash had its own wallet.  

 

I'm out like $20 oh well.  

 

Guys. Stop using online wallets.  Stop.

Intel 4670K /w TT water 2.0 performer, GTX 1070FE, Gigabyte Z87X-DH3, Corsair HX750, 16GB Mushkin 1333mhz, Fractal R4 Windowed, Varmilo mint TKL, Logitech m310, HP Pavilion 23bw, Logitech 2.1 Speakers

Link to comment
Share on other sites

Link to post
Share on other sites

Added Source: Response & Facebook Video 

 

 

Link to comment
Share on other sites

Link to post
Share on other sites

A fake NiceHash Facebook page was set up the day before the attack, is this a coincidence or could it be the attacker created this for some reason?

 

https://www.facebook.com/pg/NiceHashSupport/photos/?tab=album&album_id=714333438769168

 

I really don't know what to think about this one as it seems unusual that someone would create a fake support page for an organisation then then goes on to be hacked less than 24 hours later. I just can't see what the attacker would get out of creating such a page. 

My Folding Stats - Join the fight against COVID-19 with FOLDING! - If someone has helped you out on the forum don't forget to give them a reaction to say thank you!

 

The only true wisdom is in knowing you know nothing. - Socrates
 

Please put as much effort into your question as you expect me to put into answering it. 

 

  • CPU
    Ryzen 9 5950X
  • Motherboard
    Gigabyte Aorus GA-AX370-GAMING 5
  • RAM
    32GB DDR4 3200
  • GPU
    Inno3D 4070 Ti
  • Case
    Cooler Master - MasterCase H500P
  • Storage
    Western Digital Black 250GB, Seagate BarraCuda 1TB x2
  • PSU
    EVGA Supernova 1000w 
  • Display(s)
    Lenovo L29w-30 29 Inch UltraWide Full HD, BenQ - XL2430(portrait), Dell P2311Hb(portrait)
  • Cooling
    MasterLiquid Lite 240
Link to comment
Share on other sites

Link to post
Share on other sites

On 06/12/2017 at 1:21 PM, raphidy said:

Welp, lost a week worth of btc, not that mad. GG well played "hacker".

 

On 06/12/2017 at 1:22 PM, knightslugger said:

lost about .015BTC myself. This will sink NH for me in the future. i will never use their pools again.

I lost 0.0033. Like 3 weeks of running my gpu while at work and sometimes at night.....  I swear to god, it's always when i start something 

 

Rip 65+ Cad

 

 

Link to comment
Share on other sites

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


×