NiceHash Freezes Repayment Program for Its $80 Million Hack Victims

Michael LaVere
  • Crypto mining platform NiceHash has announced a halt to its reimbursement program for users affected by the Dec. 2017 hack. 
  • NiceHash claims reimbursement was made at the expense of the company's income. 

Cryptocurrency mining platform NiceHash has announced that it will halt its repayment program for users affected by its security breach. 

In December 2017, NiceHash suffered a hack that saw attackers steal more than 4,700 BTC from clients, worth about $64 million at the time. According to an official update published Dec. 17, NiceHash is pausing its repayment program at 82% of total reimbursement to users affected by the hack. 

According to the update, 

Unfortunately, NiceHash will not be able to fulfill its promise to fully reimburse all users and achieve the 100% reimbursement status or the Repayment program in the foreseeable future.

NiceHash claims to have been reimbursing users with funds generated from fees, thereby cutting into the platform’s profit. 

The update continues, 

Our income and thus Repayment program assets are subject to taxation. The current state of the Repayment program is at 100,04% of the original loss value in our accounting books.

NiceHash says it will continue the repayment program in 2020 if the market sees “positive development.”

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