NiceHash

NiceHash is a global cryptocurrency hash power broker and cryptocurrency exchange with an open marketplace that connects sellers of hashing power (miners) with buyers of hashing power using the sharing economy approach. The company provides software for cryptocurrency mining. The company was founded in 2014 by two Slovenian university students, Marko Kobal and Matjaž Škorjanc.

NiceHash
Type of businessPrivate
Type of site
Marketplace
Headquarters
British Virgin Islands
Country of originSlovenia
Area servedWorldwide (190+ Locations)
Founder(s)Matjaž Škorjanc, Marko Kobal
IndustryCryptocurrency
ServicesCryptocurrency Exchange, Software, Cryptocurrency Mining
Employees60
ParentH-Bit Holding
URLwww.nicehash.com
RegistrationOptional
Users2.5 Million
Launched2014 (2014)
Current statusOnline

The company is based in The British Virgin Islands[1][2] and has offices in Maribor, Slovenia.[3] NiceHash users are primarily video gamers who have powerful GPU graphics cards suited to cryptocurrency mining. The company has over 2.5 million users in 190 countries worldwide as of November 2021.[4]

History

NiceHash was founded in April 2014 by Matjaž Škorjanc, a former medical student turned computer programmer,[5] and Marko Kobal.

On December 6, 2017, approximately 4,700 Bitcoins (US$64 million at the time of the hack) were stolen from NiceHash allegedly by a spear phishing attack.[6] Due to the open and transparent nature of the blockchain, the security breach received an influx of attention as the stolen sum and movement of bitcoins were visible to anyone on the internet.

On December 21, 2017, Marko Kobal resigned as the CEO of NiceHash.[7][8] On that day, the company also re-opened their marketplace after the December 6th hack. NiceHash hired cyber security experts as well as the security firm Lifars[9] and implemented new security protocols after the incident.[10] NiceHash reimbursed the affected users through the Repayment program, and 100% of the stolen funds were reimbursed to those who claimed them by the deadline of December 16th 2020.[11]

On February 17, 2021 a North Korean hacker group (Lazarus) was indicted for the 2017 NiceHash attack.[12][13]

In February 2021, NiceHash launched QuickMiner,[14] a lite cryptocurrency miner using Excavator for mining Ethereum with a user-friendly interface and automatic tuning options for GPU mining.[15]

In August 2021, NiceHash launched NiceTalk,[16] a cryptocurrency podcast targeting video gamers offering commentary and educational content from other cryptocurrency experts. Guests from Ravencoin, Ergo, and Ethereum have featured on the show.

Business model

Hash power marketplace

NiceHash has a unique business model in the cryptocurrency industry, it is neither a mining pool, nor a mining farm. Instead, it features an open hash power marketplace where buyers can purchase computer power to add to their mining pool or operations.

Buyers

Buyers select the crypto-currency that they want to mine, a pool on which they want to mine, set the price that they are willing to pay for it and place the order.[17] Once the order is fulfilled by miners who are running NiceHash Miner on their machines, the buyer gets the crypto-currency from the pool.

Sellers (miners)

Sellers or miners have to run NiceHash mining software and connect their mining hardware or just regular PCs to NiceHash stratum servers[18] and to the buyer's order. Their hashing power is forwarded to the pool that the buyer has chosen for mining. For each valid share they submit, they get paid in bitcoin[19] for the price that is determined by the current weighted average[20] and refreshed each minute. This is all done automatically and the process does not require complex technical skills.

In return for providing this service, NiceHash takes a percentage or fee from each group (buyers and sellers).[21]

Cryptocurrency exchange

NiceHash opened a cryptocurrency exchange in May 2019, where miners and other traders of cryptocurrencies trade their mined coins to other cryptocurrencies or exchange to fiat currency.[22] The platform lists 64 coins and tokens, and 80 trading pairs.

Software

NiceHash provides software for cryptocurrency mining for sellers (or miners) to connect their computing power to the hash power marketplace and operating systems for mining farms.

Service disruptions

On December 6, 2017, approximately 4,700 Bitcoins (US$64 million at the time of the hack) were stolen from NiceHash allegedly by a spear phishing attack.[6] Due to the open and transparent nature of the blockchain, the security breach received an influx of attention as the stolen sum and movement of bitcoins were visible to anyone on the internet.[23]

On December 21, 2017, Marko Kobal resigned as the CEO of NiceHash.[24][8] On that day, the company also re-opened their marketplace after the December 6th hack. NiceHash reimbursed the affected users through the Repayment program, and 100% of the stolen funds were reimbursed by December 16th 2020.[11]

On 17 February, 2021 a North Korean hacker group was indicted for the 2017 NiceHash attack.[25][13]

Philanthropy

NiceHash donates on a regular basis to medical companies[26][27][28] and sponsors sporting events for those with disabilities.[29] The holding company H-Bit D.O.O is an active contributor to Slovenian charities where the company was founded.

Controversies

NiceHash's founder Matjaž Škorjanc is one of the creators of malware Mariposa botnet, which infected over 1 million computers with Butterfly (Mariposa in Spanish) Bot. Slovenian national police force arrested Matjaž on charges of distributing the malware in 2010. Matjaž was found guilty and served four years and ten months in a Slovenian prison. On June 5, 2019, US law enforcement opened a case in the operations of the Mariposa (Butterfly Bot, BFBOT) malware gang.[30] In 2019, The FBI moved forward with new charges and arrest warrants against four suspects, including Matjaž Škorjanc.[31][32] Matjaž was detained in prison in Germany in 2019. Due to international law agreements on double jeopardy, he was released in 2020.[33]

References
  1. "NiceHash - Leading Cryptocurrency Platform for Mining and Trading". www.nicehash.com. Retrieved 2021-11-02.
  2. "NiceHash Ltd British Virgin Islands, Road Town | Info-clipper.com". www.info-clipper.com. Retrieved 2021-11-02.
  3. "About NiceHash". NiceHash.
  4. "NiceHash - Leading Cryptocurrency Platform for Mining and Trading". www.nicehash.com. Retrieved 2021-11-02.
  5. "DKUM - Iskanje". dk.um.si. Retrieved 2021-11-02.
  6. "Millions May Have Been Stolen in a Bitcoin Marketplace Hacking Heist". Forbes.
  7. Peterson, Becky (2017-12-30). "Bitcoin startup NiceHash has a new CEO just weeks after hackers stole $63 million from the company". Business Insider France (in French). Retrieved 2021-11-02.
  8. "Marko Kobal Resigns". LinkedIn. 2017-12-21. Retrieved 2017-12-27.
  9. LLC, LIFARS (2017-12-07). "Cryptocurrency Platform Was Hacked, $64 Million in Bitcoin Stolen". LIFARS, Your Cyber Resiliency Partner. Retrieved 2021-11-02.
  10. "NiceHash - Leading Cryptocurrency Platform for Mining and Trading". www.nicehash.com. Retrieved 2021-11-02.
  11. Campbell, Mark (December 17, 2020). "Nicehash has claims to have paid back all of its users following its 2017 hack". Overclock3D.
  12. "Three North Korean Military Hackers Indicted in Wide-Ranging Scheme to Commit Cyberattacks and Financial Crimes Across the Globe". www.justice.gov. 2021-02-17. Retrieved 2021-11-02.
  13. "North Korean hacker group indicted for 2017 NiceHash attack". NiceHash. Retrieved 2021-06-10.
  14. "NiceHash - Leading Cryptocurrency Platform for Mining and Trading". www.nicehash.com. Retrieved 2021-11-02.
  15. NiceHash QuickMiner, NiceHash.com, 2021-11-01, retrieved 2021-11-02
  16. "NiceTalk - YouTube". www.youtube.com. Retrieved 2021-11-02.
  17. "Microbt Launch the Next-Generation Mining Rig With Speeds Up to 410 Terahash". MicroBT Whatsminer | MicroBT China | Official. 2020-07-31. Retrieved 2021-09-21.
  18. "Which Stratum servers are available? - Mining on NiceHash". NiceHash. Retrieved 2017-12-29.
  19. "What is the PPS reward system? - Earnings & Payments on NiceHash". NiceHash. Retrieved 2017-12-29.
  20. "Available algorithms on NiceHash". NiceHash. Retrieved 2017-12-29.
  21. "Fees - Service on NiceHash". NiceHash. Retrieved 2017-12-29.
  22. "Banxa Announces Partnership with Mining Platform NiceHash for Crypto Buy/Sell". finance.yahoo.com. Retrieved 2021-11-22.
  23. "Bitcoin Address 1EnJHhq8Jq8vDuZA5ahVh6H4t6jh1mB4rq". blockchain.info. Retrieved 2017-12-29.
  24. Liptak, Andrew (2017-12-31). "Crypto-mining site NiceHash has a new CEO following hack". The Verge. Retrieved 2021-09-21.
  25. "Three North Korean Military Hackers Indicted in Wide-Ranging Scheme to Commit Cyberattacks and Financial Crimes Across the Globe". United States Department of Justice. 17 February 2021. Retrieved 2021-06-10.
  26. "NiceHash - Leading Cryptocurrency Platform for Mining and Trading". www.nicehash.com. Retrieved 2021-11-02.
  27. "Novo upanje za bolnike s krvnim rakom – UKC Ljubljana prevzel prvo napravo za celično terapijo". RTVSLO.si (in Slovenian). Retrieved 2021-11-22.
  28. "Eno napravo CAR-T kupilo več kot 4000 donatorjev, drugo pa družina Škorjanc". www.delo.si (in Slovenian). Retrieved 2021-11-22.
  29. "H-Bit d.o.o." h-bit.si. Retrieved 2021-11-02.
  30. "Four International Hacking Suspects Charged with Racketeering". US Department of Justice. 2019-06-05. Retrieved 2019-06-11.
  31. "Eight years later, the case against the Mariposa malware gang moves forward in the US". ZDNet. 2019-06-11. Retrieved 2019-06-11.
  32. Canellis, David (2019-06-11). "FBI charges NiceHash founder over dangerous dark web malware (again)". TNW | Hardfork. Retrieved 2021-09-21.
  33. "Slovenskega hekerja le niso izročili Američanom". www.slovenskenovice.si (in Slovenian). Retrieved 2021-11-02.
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