NiceHash has finally finished reimbursing users impacted by a December 2017 security compromise. The cloud mining company has paid back a total of 4,640 bitcoin.
The firm has been gradually diverting profits to its users for almost three years. It started the refund process in Feb. 2018.
NiceHash Rounds off 2020 by Completing Ongoing User Refund
The NiceHash cloud mining company had a double cause for celebration on Wednesday. The bitcoin price finally exploded past its former all-time high, which coincided with the completion of user refunds after almost three years.
NiceHash reportedly fell victim to a spearfishing attack on Dec. 6, 2017. The Slovenian company lost 4,640 BTC (~$64 million at the time) of its users’ funds when an employee’s computer was apparently compromised.
According to a press release published Wednesday, NiceHash completed its Repayment Program on Dec. 16. Its CEO, Martin Škorjanc, thanked those users who continued to trust the company over the period.
In a letter addressed to NiceHash users, mining enthusiasts, and the extended cryptocurrency community, Škorjanc described how ‘consultants and experts’ had predicted the cloud mining company’s demise following the widely reported hack.
He then detailed how the firm managed to complete the reimbursement of more than $100 million at today’s bitcoin price. The company reportedly operated on the bare minimum needed for survival while waiving profits and transferring excess funds to impacted users.
Expressing pride in the team’s efforts, Škorjanc wrote:
“… it heralds the beginning of a new era of growth and development for us. We don’t owe anyone anything anymore. We have fully settled all tax liabilities, and 4,640 bitcoins are again in our users’ accounts.”
"We are immensely grateful to all of you who have not lost confidence in us when it would be the easiest thing to do. You trusted our promise to give you back everything that was lost. Above all, in our ability to keep our promise."https://t.co/Nbdts7pj0U#Bitcoin
— NiceHash (@NiceHashMining) December 17, 2020
Identity of NiceHash Hackers Still Unknown
As Škorjanc mentioned in Thursday’s letter, it’s still unclear who compromised NiceHash’s security. According to Slovenian news publication Total Slovenia News, both Europol and the FBI investigated the hack.
NiceHash also hired digital forensics firm Lifars to find the perpetrator. Interestingly, Matjaz Škorjanc, NiceHash’s CTO, and the CEO’s son was previously associated with malware distribution.
Matjaz reportedly served a five-year sentence in Slovenia for his role in creating the Mariposa botnet, which infected millions of computers. He was released in late-2017.
As BeInCrypto reported in 2019, the FBI charged Matjaz with racketeering and conspiracy to commit wire and bank fraud. In a blog post regarding its CTO, the company stated that the indictment was not related to NiceHash or its security breach.
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