Saturday, December 4, 2021

Genesis Mining Promises to Pay Users After Hot Wallet Hacked

Genesis Mining Promises to Pay Users After Hot Wallet Hacked

On 21st July, Genesis Mining temporarily suspended daily payouts to mitigate losses, after a hacker gained access to a hot wallet. The company said it would reimburse customers for any missing funds.

Also read: Bitstamp: No Support for ‘Altcoin’ Bitcoin Cash – for Now

Why Were Daily Payouts Suspended?

In a service update released on the Genesis Mining blog, the cloud mining company stated it halted payouts as an “increased security measure.” Payouts were resumed on 26th July, according to the release.

Users did not receive payment for five consecutive days. Genesis Mining said it will be reimbursing those missed payouts too, adding:

“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.”

Hacker Drained Funds From Hot Wallet

The attack was detected by monitoring systems, however the hacker gained access to a hot wallet before being stopped. He was able to transfer some funds out of the hot wallet, though Genesis Mining did not reveal the exact amount that was transferred.

Genesis Mining LogoThe release also stated that no personal identifying information or credit card information was stolen. However at this time, it is unclear if that was investigated and verified by the third-party cyber security team hired to help with the attack.

In the aftermath of the hack, Genesis Mining provided customers with updates via Twitter. The updates did not provide details, but it gave customers assurance that the issues they were experiencing were being resolved.

As more and more companies processing regular cryptocurrency payments enter this industry, there will potentially be more hot wallet hacks. Hopefully, other companies will take note from Genesis Mining by providing transparency during a problem, and reimbursing customers’ losses.

What Is Genesis Mining?

Genesis Mining is a leading cloud mining service that sells contracts for hash power to mine various cryptocurrencies. Users are paid out daily once they have purchased a mining contract.

Cloud mining companies say they save customers the hassle of acquiring, setting up, and maintaining their own mining equipment.

Are you a Genesis Mining customer? What’s your experience? Let us now.


Images via Genesis Mining, 

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