Although 2020 was a fantastic year for cryptocurrency, it wasn’t all smooth sailing. The two most valuable cryptocurrencies have been gaining value all through the year. BTC (Bitcoin) a few days ago hit $27,000, and ETH (Ethereum) is also steadily rising now, going for more than $700. This spike in prices has been a big motivator for hackers back in 2017 and now. In 2017, Bitcoin went on its first-ever bull run and peaked at $20,000 per coin. It was during this time that hackers pounced on NiceHash, a Crypto Mining Pool. By the time it was all said and done, the hackers had stolen a total of 4640 Bitcoins valued at $55 million and $104,629,328 by the time this article was published.
Three years later, NiceHash says it has fully reimbursed the users who lost their valuable digital assets. For three years, the Slovenia-based company has regularly waived its profits to make its customers whole. According to the letter provided by CEO Martin Skorjanc, they do not regret the decision to make their clients whole again. According to Skorjanc, the repayment being complete signals a new chapter for the company and a new growth and development era. In an email to CoinDesk, CMO Andrej Skraba revealed that they had been using money collected as fees on its platform to repay their clients.
Although the process is not yet done, the company had projected that it should have completed the task by now. However, the bear market that has been active for the last couple of months means that people aren’t selling their cryptocurrencies as much anymore. Most are holding in anticipation of their values rising. Although a good thing for the client, it’s not such good news for the company since they rely on fees deducted during transactions to profit. Due to swift, transparent action on the company’s part, it retained most of its clients. On realizing that they had been hacked, the company went onto their social media page and admitted to the security breach.
A few days ago, EXMO, a UK-based crypto exchange platform with offices in Kyiv, Moscow, and London. The latest cyberattack victim has confirmed that it lost about 5% of its total assets being held in hot wallets. The company said that it noticed some large withdrawals from the exchange where a security audit shows significant amounts of BTC, ZEC, XRP, USDT, ETC, and ETH being sent outside the business. In this hack, only funds located in the hot wallet were stolen. Any crypto in a cold wallet EXMO said didn’t warrant any concern since these funds were safe.
Upon discovering the hack, EXMO updated their clients and immediately took action. Until further notice, the company has suspended all withdrawals and requested its customers not to deposit any more funds into the platform. In a bid to keep their clients happy and stress-free, EXMO categorically stated that if your account had been affected, you would be reimbursed. Unlike most of the other exchanges, EXMO prided itself in keeping about 5-10% of its assets in hot wallets to make the process of withdrawal much faster and easier.
Upon investigation, it was discovered that the funds were sent to a single address. The wallet in question here received about 306 Bitcoin worth around $7.24 million and later withdrawals of about 15 Bitcoin valued at about $355,000. In an attempt to keep the stolen altcoins out of innocent user’s hands, the company is working with the U.K. National Cybersecurity Center, Chainalysis, Crystal, and CipherTrace.