NiceHash reimburses 4,640 Bitcoins to victims of a 2017 hacking attack

NiceHash has finished reimbursing the victims of its December 2017 security breach.

An apparent spearfishing attack saw more than 4,640 BTCs drain from the company’s portfolio.

NiceHash operated with the minimum resources necessary to survive while reimbursing users.

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He went on to detail how the company was able to pay back more than $100 million at the current Bitcoin Circuit rate. The company would have operated at the bare minimum necessary for its survival while forgoing profits and transferring the excess funds to the affected users.

NiceHash finally finished reimbursing users affected by a security breach in December 2017. The cloud mining company reimbursed a total of 4,640 bitcoins.

The company has been gradually diverting its profits to its users for nearly three years. It launched the repayment process in February 2018.

NiceHash ends 2020 by reimbursing its users

Cloud mining company NiceHash had two reasons to celebrate on Wednesday. Bitcoin’s share price finally surpassed its former historical high, which coincided with the completion of refunds to users almost three years later.

NiceHash was reportedly the victim of a „spear phishing“ attack on December 6, 2017. The Slovenian company lost 4,640 BTC (approximately $64 million at the time) of its users‘ funds when an employee’s computer was apparently compromised.

According to a press release issued on Wednesday, NiceHash completed its repayment program on December 16. Its CEO, Martin Škorjanc, thanked the users who continued to trust the company during this time.

In a letter to NiceHash users, mining enthusiasts and the broader cryptographic community, Škorjanc described how „consultants and experts“ had predicted the mining company’s disappearance from the cloud following the hacking widely reported by the media.

Expressing pride in the team’s efforts, Škorjanc wrote:

… This heralds the beginning of a new era of growth and development for us. We no longer owe anything to anyone. We have fully settled all tax obligations and 4,640 Bitcoins are back in our users‘ accounts.

We are extremely grateful to all of you who did not lose confidence in us when it would have been the easiest thing to do. You trusted our promise to give you back everything that was lost. Above all, you trusted our ability to keep our promise.

The identity of the hackers is still unknown.

As Škorjanc mentioned in Thursday’s letter, it is still unclear who compromised NiceHash’s security. According to the Slovenian news paper Total Slovenia News, Europol and the FBI have investigated the hacking.

NiceHash also hired the digital forensics company Lifars to find the hacker. Interestingly, Matjaz Škorjanc, NiceHash’s CTO, and the CEO’s son were previously involved in malware distribution.

Matjaz is reported to have served a five-year sentence in Slovenia for his role in creating the Mariposa botnet, which infected millions of computers. He was released at the end of 2017.

As BeInCrypto reported in 2019, the FBI charged Matjaz with racketeering and conspiracy to commit banking and electronic fraud. In a blog post about his CTO, the company stated that the indictment was not related to NiceHash or its security breach.