Earlier this week, we touched upon payment issues for Genesis Mining customers. It now appears this situation has grown slightly worse. A few days ago, the company issued a blog post indicating their hot wallet was accessed by an unauthorized party. An undisclosed amount of funds was transferred to a third-party address. The company will reimburse this money shortly, yet it shows cloud mining service providers are still prone to hacking.
It is quite interesting to note the hot wallet hack occurred on July 21st. This also explains why a lot of money was moved to a different company wallet in the following days. It seems Genesis Mining moved the funds to avoid a repeat of this hack. For now, there is no indication of how much money was stolen from the cloud mining company. Moreover, we do not know which currency is affected by this hack either. It is possible it is the Ethereum wallet, but we can’t say for sure.
Genesis Mining Hack is Not That Serious
What is more important is how Genesis Mining handles the situation. It appears the company has plans to reimburse the stolen funds. Additionally, the attack vector has been mitigated successfully. From now on, the company uses improved monitoring and detection capabilities. This hack shouldn’t affect too many users, though. Unfortunately, it also forced the company to delay daily payouts for an undisclosed amount of time. That would explain why some users were complaining about the lack of new payments.
It doesn’t appear personal information was obtained during this hack either. Email addresses and names should be safe from harm. Customer credit cards aren’t stored on the Genesis Mining servers, so they aren’t affected either. Additional security measures may be introduced in the future, depending on the outcome of the cyber investigation. For now, business will resume as normal, as there is no reason to think that will change anytime soon. It is good to see the company can effectively recover from such an incident, though.
Users will be pleased to hear all missing payouts will be made up for shortly as well. Genesis Mining is covering the full amount out of pocket. This further indicates the company has nothing but honest intentions. Even though some users may feel they aren’t earning enough to justify the contract costs, legitimate cloud mining businesses don’t generate ludicrous amounts of money by any means.It will be interesting to see how the company moves forward from here on out.
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