Mining Service Nicehash Hacked, $60 Million in User Funds Stolen

[Spidey329]

The account will be heavily monitored and all transactions will have a record, so getting the money is going to be pretty hard without getting busted or an exchange allowing them to transfer funds in etc etc.

very curious how they get their money from this as every single transaction will have a record.

Not like holding physical money where you could gamble some in a casino, and slowly trickle it out without drawing much attention

That's exactly what I don't understand. If all transactions are traceable, it seems people can get their currency back. However, if it is untraceable, then who would continue to buy a flawed currency, hence driving the value of said currency to zero.

Either way, I don't see how the thieves can profit from this. And if they can profit, then maybe whomever they profit from going forward deserves to get burned.

caveat emptor

They'll use a tumbler service. No, not that Tumblr. It's essentially a laundry service that will take in the coins, and mix them with a bunch of other transactions.

https://bitcoin.stackexchange.com/questions/17807/what-is-a-bitcoin-tumbler

They obfuscate the transactions with a ton of other transactions and addresses. It'll take a lot of time to mask it, but it's doable.

Spread out over time, all you'll see is a bunch of tiny BTC amounts going to random addresses. Trying to identify the owner of each address that may or may not be connected will prove futile. These services are located in countries favorable to them.

 

[Rob94hawk]

Someone is going to have to work very hard to get at the $60 million stored in a pickle jar buried in my back yard.

I'll ask 4chan were it is.

 

[Mchart]

You are a little confused. This wasn't a blockchain failure. The US dollar likewise doesn't lose value just because a bank gets robbed.

Perhaps you don't follow cryptocurrency or care to learn how it works at a basic level, but to anyone actually involved in crypto and mining, this was an inside job where the greasy slovenian owners of Nicehash cashed out the system's float of $60M - and by cashed out I mean this was too strategically timed to be coincidence -- BTC at ATH and right before the anticipated CME pump&dump next week.

And they pretended to be "hacked", gave it a day, then went and cried on cam with looks of deep concern while trying to suppress laughter as they invited kiddie miners back to repeat the cycle all over again.

It's brilliant actually.

This is wrong.

The USD or any currency absolutely would loose value if the government that guaranteed it didn't do anything to stop criminals from robbing banks as people would no longer have any trust in the currency.

Banks themselves take out insurance that covers them against robbery/natural disaster and this insurance also mandates certain levels of protection.

Cryptocurrency has none of this.

 

[tetris42]

The USD or any currency absolutely would loose value if the government that guaranteed it didn't do anything to stop criminals from robbing banks as people would no longer have any trust in the currency.

Banks themselves take out insurance that covers them against robbery/natural disaster and this insurance also mandates certain levels of protection.

Cryptocurrency has none of this.

It would lose some value, but it's debatable how much. BANKS are what would lose value in the scenario you're describing. The currency would still remain desirable, but people would hide it in mattresses, have more security, etc.

 

[c3k]

I learned long ago to protect my online banking with a long code word. I use the phrase "Mynameisn0tRumplestiltzkein" as an unbreakable code. The zero instead of "o" is cool and throws off scripts. I feel that keeps me protected.

In case I forget it, I've written it down and buried in a pickle jar in my backyard.

I'm safe.