Cryptocurrency mining platform NiceHash has announced the pause of its repayment program for users who lost their funds due to a hack.
In December 2017, a hacker broke into NiceHash’s platform. As a result, the company lost over 4700 Bitcoin worth $80 million at the time. To date, NiceHash has completed 82% of repayments to users affected by the security breach.
However, the mining firm announced that it will no longer reimburse its customers. In a tweet, it provided a detailed explanation for the decision.
NiceHash, the largest hash-power broker marketplace is forced to pause the Repayment program at 82%. This press release explains the reasons and provides detailed explanations for such a decision.https://t.co/5h1Ad6v99c pic.twitter.com/ylYCqKqAYU
— NiceHash (@NiceHashMining) December 18, 2019
Staying in business
The mining platform has provided reasons for halting repayments. Simply put, it can’t afford to complete them as it needs funds to keep the platform in the market.
Yet, the mining firm said it would continue with the legal procedures connected to the repayment program. It added that it would utilize every opportunity toward 100% reimbursement. However, at the moment, according to the platform, it’s simply not possible.
“Unfortunately, NiceHash will not be able to fulfil its promise to fully reimburse all users and achieve the 100 per cent reimbursement status or the Repayment program in the foreseeable future,” the press release reads. “We are deeply sorry we are not able to completely fulfil our promises given at the start of the Repayment program.”
The firm emphasized that if the marketplace witnesses a positive development in 2020, it will resume its reimbursement efforts.
NiceHash noted that information regarding the repayment program would in the meantime remain visible in users’ wallets. The mining platform also said it is currently unable to name a potential point time for the renewal of reimbursements.
Notably, despite the 70% correction and bear market, the hash power on the Bitcoin network, as earlier reported, has doubled since May.
For the uninitiated, NiceHash, a Slovenian cryptocurrency hash power broker with an integrated marketplace, was established in 2014. It’s a marketplace that brokers between miners and investors, allowing owners of mining hardware to rent out their hash power.