Slovenia-based Bitcoin [BTC] cloud mining service NiceHash has successfully paid off over 60% of the funds that were stolen during the hack that occurred on their service in December of last year. The reimbursements were made on a monthly basis, as Slovenian police officials stated that the investigation was “demanding and lengthy”.
The service functioned to connect the buyers and sellers of computing power to mine various cryptocurrencies. By renting out hashpower and factoring in mining difficulty and price, users of the service can make a profit through cloud mining.
However, the platform was hacked on 6th December, forcing it to halt operations before resuming them 2 weeks later. In a statement concerning the hack, they said on Reddit:
“Our payment system was compromised, and the contents of the NiceHash bitcoin wallet have been stolen.We are working to verify the precise number of BTC taken.”
The wallet in question contained 4700 Bitcoin [BTC]s, worth around $59 million at the time of the hack. This was during the Bitcoin bull run in December, and as the price has dwindled since, with the value of the theft being around $32.4 million currently. In order to recompense the users affected by the hack, the platform announced a repayment program.
During the announcement of the repayment program, NiceHash provided a commitment to its users to pay the lost funds to its users. They also clarified that all the users affected by the attack will be “fully reimbursed”, even going so far as to say that it will occur under the same conditions and at the same time.
Moreover, NiceHash also stated that they will announce every step of the program in advance, thus allowing the users to monitor the progress of their repayment. The platform then proceeded to pay the users back, with the monthly payouts beginning from February. 10% was paid back with every consecutive month, with 60% being paid earlier this month.
Kun Njord, a user of NiceHashs’ mining services, said:
“My friend joined NiceHash before the hack and lost about 1 Bitcoin. As I joined after it was hacked, at the height of the crypto-boom, I was able to capitalize on the services they provided. I am still in touch with the person who lost his crypto, and he got it back at the beginning of this month. This represents a solid step forward towards repaying their customers.”
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