(Reuters) – A Slovenian cryptocurrency mining marketplace, NiceHash, said it lost about $64 million worth of bitcoin in a hack of its payment system, the latest incident to highlight risks that uneven oversight and security pose to booming digital currencies.
NiceHash matches people looking to sell processing time on computers in exchange for bitcoin.
There have been at least three dozen heists on exchanges that buy and sell digital currencies since 2011, including one that led to the 2014 collapse of Mt. Gox, once the world’s largest bitcoin market.
More than 980,000 bitcoins have been stolen from exchanges, which would be worth more than $15 billion at current exchange rates. Few have been recovered, leaving some investors without any compensation.
The hacks have not kept demand for digital currencies from soaring. Bitcoin’s value has climbed more than 15-fold so far this year, closing at a record $16,000 on the Luxembourg-based Bitstamp exchange on Thursday, ahead of this weekend’s launch of bitcoin futures by CBOE.
Security experts said they expect the cyber-crime spree to pick up as the rising valuations attract interest from cyber criminals looking for victims that lack experience defending against hacks.
“These exchanges are not in my opinion secure,” said Gartner security analyst Avivah Litan. “You don’t know what their security is like behind the scenes.”
NiceHash executive Andrej P. Škraba told Reuters that his firm was the victim of “a highly professional” heist that yielded about 4,700 bitcoin, worth around $64 million.
Sophisticated criminal groups are increasingly targeting the cryptocurrency industry, focusing on exchanges and other types of firms in the sector, said Noam Jolles, a senior intelligence specialist with Israeli cyber-security company Diskin Advanced Technologies.
“The most sophisticated groups are going into this area,” she said.
NiceHash, which advised users to change online passwords after it halted operations on Wednesday, has provided few other details about the attack on its payment system.
“We ask for patience and understanding while we investigate the causes and find the appropriate solutions for the future of the service,” it said on its website.

Jameson White is a dynamic and multifaceted individual with a wide range of skills and expertise. He is a millennial attorney, law professor, entrepreneur, writer, and speaker on a variety of topics including privacy, cybersecurity, A.I., AR/VR, blockchain, and digital monies.
With a passion for technology and its impact on society, Jameson has written for many outlets and contributed to cybersecurity and technology publications. He has a keen eye for detail and is highly skilled at breaking down complex concepts into easily digestible pieces for his readers.
As an attorney and law professor, Jameson has a deep understanding of the legal aspects of technology and is able to provide unique insights into the legal implications of emerging technologies. He is also an entrepreneur with a strong understanding of the business side of technology and is always looking for innovative ways to leverage new technologies to create value for businesses and consumers.
Jameson is a highly sought-after speaker and has spoken at many industry events and conferences. He is known for his engaging and informative presentations, which are always well-researched and thought-provoking.
The Most Read
Сryptocurrencies
Bitcoin and Altcoins Trading Near Make-or-Break Levels
Financial crimes
Thieves targeted crypto execs and threatened their families in wide-ranging scheme
Financial crimes
Visa Warning: Hackers Ramp Up Card Stealing Attacks At Gas Stations
News
Capitalism is having an identity crisis – but it is still the best system
Uncategorized
The 73-year-old Vietnamese refugee is responsible for bringing Sriracha to American consumers
Uncategorized
Electric Truckmaker Rivian, Backed By Amazon, Ford, Raises Whopping $1.3 Billion