Earlier this month, one of the most prominent crypto mining pools suffered from a hack. The announcement was made by the company that owns the crypto mining pool in question.
Due to the hacking incident, digital assets worth $3 million that belonged to the pool as well as its clients were compromised.
Crypto pool hacked
A press release was recently issued by Bit Mining in which the coin minting company announced that one of its subsidiaries had become a victim of a hacking attack.
The entity that was affected in the said attack is none other than the renowned bitcoin mining pool Btc.com. In the last week, the pool contributed about 2.5% of the global hashrate and its annual contribution stands at 4%.
The announcement about the hack was first published on Monday, December 26th, 2022, which disclosed that the hacking incident had occurred back on December 3rd, 2022.
The breakdown showed that the total value of digital assets stolen was $3 million, out of which $2.3 million belonged to the company, while the remaining $700,000 belonged to its clients.
As far as the report is concerned, law enforcement was informed about the hacking attack on December 23rd, 2022 in Shenzhen, China.
An investigation was launched into the hacking incident by the Chinese authorities and they are working with relevant agencies for collecting the evidence.
Bit Mining revealed that they were willing to devote all efforts in order to make a recovery of their stolen digital assets.
According to the mining company, they have already managed to secure some of the crypto assets of Btc.com.
It also highlighted that once they had learned about the hacking incident, they immediately implemented technology that was aimed at intercepting and blocking hackers in a better way.
It also assured that it was operating the bitcoin mining pool as per usual and it was only its digital asset services that had been affected. Otherwise, its client fund services were operating as per the norm.
Not only does Bitcoin Mining own one of the top-ten mining pools that provide mining services for bitcoin (BTC), litecoin (LTC) and ether (ETH), but it also operates more coin minting facilities.
Other than that, Bit Mining Limited also owns Bee computing, the mining device manufacturer. Last year in spring, the Chinese government had begun to crack down on the crypto mining industry.
This prompted Bit Mining to begin expanding its operations to Kazakhstan, as it has become a prominent crypto mining hotspot.
The company announced back in August this year that it had managed to obtain a direct offering worth $9.3 million from institutional investors.
However, crypto mining has been suffering a lot this year because of the bear market in the crypto space.
Core Scientific, one of the biggest mining companies, has filed for bankruptcy protection. Likewise, Argo Blockchain, another mining firm is also struggling, as are some of the other crypto mining companies.