Genesis-Mining Hacked! It's official!
Genesis Mining, the largest Bitcoin cloud mining site, just released an official announcement:
We want to keep you updated on the technical difficulties that have interrupted payouts in the last few days. Our team has been working to address every aspect of this problem to restore service, and now we’re able to update you in more detail.
On the night of Friday July 21st, we detected an unauthorized intrusion by an attacker. This attacker gained access to a hot wallet and was able to transfer funds which we will reimburse in full. Shortly after the intrusion was detected, our team was able to shut down the attack. We immediately took steps to mitigate the issue, including enhancing our monitoring and detection capabilities, and further hardening our environment. One of those increased security measures was to delay our daily payouts.
We have found no evidence that sensitive end user information, including email addresses, were exposed by this incident. We also do not collect, store or have access to customers’ credit card details. We immediately engaged 3rd party cyber security advisory to investigate the attack, and validate that the measures we took to address this issue – and it’s those security practices that ensure that an issue like this remains isolated and resolvable.
We want to assure you that our mining operation was not affected and is running as normal. Every single one of our customers will receive their missing payouts as soon as we’re sure about the safety and integrity of our payment system. One of the advantages of the daily payout system is that it helps prevent actual losses, even in moments like these that cause delays.
The next payout is being scheduled, and all missing mining profits will be paid out to our users during the coming days. Genesis Mining will cover the full amount, and you will receive all of your payouts. The mining profits will be released gradually with the usual daily payouts, so you will receive two payouts a day instead of the usual single payout per day, until all missing payments are complete. We’re sorry for any delays in ticket responses, and I want to personally assure you that our Customer Service team will respond to each and every concern you have.
We will update you as soon as new information is available.
We’ve been providing daily cryptocurrency payouts for more than three years now and treat these payouts as a promised service for our customers. Your trust and confidence in Genesis Mining is of the utmost importance to us, and we understand the frustration around not receiving those payouts. That’s why our team is working around the clock to resolve the issue and restore payouts, while ensuring something like this doesn’t happen again.
Every person who mines with us helps make what we do possible, and we appreciate your patience with us as we work to ensure security while getting you your hard earned coins.
Sincerely yours,
Marco Streng
CEO Genesis Mining
Most important part:
Every single one of our customers will receive their missing payouts
source: http://blog.genesis-mining.com/genesis-mining-service-update
My guess: too many people like CryptNick agressively promoting GM.
How can GM give you extra hashpower instantly? Are the ASICS waiting for you to be activated? Bitclub has delayed the starting of your mining contract from 10 days to 30 days, because they need to buy and install the hardware. And Genesis don't have to?
Two weeks ago, returns on GM started to go down, although they are in btc, not usd.
Explanation: too many new subscribers, so the cake has to be split amongst more people + they probably ran out of equipment, so their hashpower in reality was lower than they let you believe.
And then suddenly after this drop in profitability, 'software' problems, 'website' problems, 'technical' problems, and now it is a hack they say.
Right at the moment when btc soared again :-P
And then they stopped with accepting new subscriptions :-)
They just ran out of gear and hashpower due to overpromotion.
Could be, interesting theory.
Then again the mistake would be in allowing purchases to immediately activate their hashpower etc before actually having it activated without having a properly calculated buffer as a safety net.
Its good news that they were upfront and honest about this, even if it took a while. As long as they make everyone whole, I don't see it as a major issue going forward. Most people have payouts set up, so they would only lose a couple of days mining, worse case. If it was an exchange or wallet provider it would be a different issue altogether.
the thing is they were not really upfront. They mailed the following when asked about it: "Due to a high demand and ongoing maintenance, we have been experiencing some technical difficulties in the past 2 days. As a result, user balances were not shown correctly and the functionality of the website was reduced. Our IT Team has resolved this issue and everything should be in order now." Only now they have come with the statement you read in the blog. I don't see it as a big issue either and don't think anyone will be affected except Genesis Mining
I didn't realise that they had tried to cover it up. That's a bit bad. However, it shouldn't affect anyone really, unless there is more they are not saying!
I knew something was fishy... INSIDE JOB MAN! https://steemit.com/bitcoin/@hotsauceislethal/bitcoin-price-forecast-7-26-2017
Fudgcicles
This post has received a 2.29 % upvote from @booster thanks to: @katiepelc.
I have calced a 10 day average of coins I was getting and entered this in my records in red. When payments resume, I'll be able to tell if/when they catch up.
Wanna try cloud mining? No noisy and slow computers at home. Everything automated , you choose hashrate, crypto to mine, pay and just sit back and let everyone else do the work while you are making money.
Genesis-mining.com 3% DiscountPromo Code!
hc5xet
Well, at least they have fast, responsive, and informative customer service reps. Rare to see this kind of efficiency in the crypto industry, given that exchanges are like insanely slow in responding.
"hacked" sure. I can see this coming from a mile away. Some people won't learn.
Couldn't happen to a nicer bunch of scammers.