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NiceHash, which describes itself as the largest marketplace for mining digital currencies, said late Wednesday that it was suspending its operations for at least 24 hours because of the security breach. Kobal said attempts to bring the system back online are still underway.
Roughly 4, bitcoins were stolen from the site's account, the CEO said. Here's what I learned. Cryptocurrencies are virtual "coins" that are "mined" by computers using complex algorithms. Bitcoin is the most popular one. NiceHash provides a platform for users to mine for other cryptocurrencies and get paid in bitcoin. Related: Nobel winner says bitcoin 'ought to be outlawed'. NiceHash has notified all major bitcoin exchanges and mining sites about the breach in order to track and possibly recover the stolen currency.
The hackers appear to have entered the NiceHash system using the credentials of one of the company's engineers. He and his wife retired from the restaurant business a few years back, tired of the long hours, he said. They were able to thanks in part to their cryptocurrency earnings of about 41 Bitcoin in total. In , after they shut down Sake Zone and when Bitcoin was worth a few thousand dollars, Mr.
Chen sold about a quarter of his Bitcoin. He now regrets that decision given how much the digital money has appreciated. I just put it there like stock and wait. Chen, 63, is still working, for the city of Oakland as a sidewalk inspector, a job he has had for almost two decades. When I asked him why he had been an early believer in Bitcoin, he explained that he had experience in the tech sector. He emigrated from Hong Kong to California in to go to the University of California, Berkeley, and one of his early jobs was testing routers for telephone companies.
We can do that. The people who introduced the Chens to Bitcoin were employees of the Internet Archive, a nonprofit based in a renovated church next door to Sake Zone. The Internet Archive wants to archive, well, everything: The internet in general with the Wayback Machine , which hosts old versions of websites; books, much to the displeasure of the people who make money from them ; old TV news ; and on and on.
The Archive had started accepting cryptocurrency donations years earlier, and had even started paying some employees partly in Bitcoin. Because many of them ate lunch at Sake Zone every day, they talked the Chens into accepting it. Chen said. But he had seen firsthand how quickly technology could change the world. More like a new product that I would like to play around with.
The Internet Archive helped the Chens set up a Bitcoin account and provided them with free Wi-Fi service so they could do the Bitcoin transactions. He said that dream has died. Kahle, 60, said. I asked Mr.