MiningPoolHub Ethereum Theft

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MiningPoolHub

MiningPoolHub is a service which allows you to optimize your mining among different alt coins. On June 11th, 2020, a suspicious transaction was detected which removed 3,221 ETH ($746k USD) for a mining fee of 2310 ETH ($535k USD). 2079 ETH ($482k USD) were returned by F2Pool. It is unclear if any of these funds were user deposits. MiningPoolHub changed their wallet address after the breach.

This exchange or platform is based in United States, or the incident targeted people primarily in United States.

About MiningPoolHub

"The uniqueness of Miningpoolhub is that it is a multipool consisting of 36 pools. Given the decline in profits from mining leading digital assets, it is worth paying attention to altcoin mining, and Miningpoolhub is one of the best platforms that combine pools for mining both popular cryptocurrencies and little-known coins."

"Miningpoolhub has been operating in the market since 2014. The pool is registered in the USA, in the state of Arizona. It is impossible to call his scam a project since he has been working since 2014 and survived more than one crypto winter. The pool supports 33 cryptocurrencies: Adzcoin, Auroracoin, Bitcoin, Bitcoin-Cash, Bitcoin Gold, Bitcoin Private, Dash, Digibyte (Qubit, Skein, Groestl), Electroneum, Ethereum, Ethereum Classic, Ethersocial, Expanse, Feathercoin, Gamecredits, Globalboosty, Groestlcoin, Litecoin, Maxcoin, Monacoin, Monero, Musicoin, Myriadcoin (Groestl, Yescrypt), Ravencoin, Sexcoin, Siacoin, Startcoin, Verge, Vertcoin, Zcash, Zclassic, Zcoin, and Zencash."

"The pool charges a commission of 0.9% of the number of earnings. Miningpoolhub pays remuneration using the PPLNS (Pay Per Last N Shares) method. The reward for finding a block is distributed depending on the number of shares (shares) and the complexity of mining for the last 30 minutes. The minimum payment amount depends on the cryptocurrency mined."

"Earnings can be received either automatically (upon reaching the minimum threshold), or in manual mode. Pay attention to the ability to automatically convert digital currency, for example, you can exchange Groestlcoin for Bitcoin and withdraw your earnings to a BTC wallet."

"The hacker's address is a long time running process that scans the network for #Ethereum nodes open to the public network. It searches for open ports and tries to connect to the node." "If the node has accessible private keys on it, it sends all the funds to the hacker's address."

"Hackers have been using the following wallet addresses (among others) to steal Ethereum from misconfigured ethereum clients. (sorry have to use screenshot due to twitter's character limit)."

"$1.3 Million stolen from #eth mining pool @MiningPoolHub. The hacker got a total of $776,398 and paid ~$500,000 In mining fees." "If this is indeed the case, this is quite a screwup by @miningpoolhub."

"@etherscan Hi. We've moved the mining address from 0xda466bf1ce3c69dbef918817305cf989a6353423 to 0x3ecef08d0e2dad803847e052249bb4f8bff2d5bb Can you please change the label?"

"F2Pool, a Chinese mining pool that recently mined an Ether (ETH) transaction with an abnormal transaction fee of 2,310 ETH, has returned 90% of the fee to its sender."

"Announcing the news on June 18, F2Pool said that the MiningPoolHub, the original owner of the address behind the transaction, has received back 2,079 ETH, or about $480,000. The mining pool specified the transaction ID showing that F2Pool has returned the amount to its original owner."

"In order to complete the reimbursement transaction, the original address holder had to sign the new address using the private key of the original address. This is because the original address is now controlled by a hacker, F2Pool noted."

This exchange or platform is based in United States, or the incident targeted people primarily in United States.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - MiningPoolHub Ethereum Theft

Date	Event	Description
June 11th, 2020 5:12:14 PM	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Total Amount Lost

The total amount lost has been estimated at $1,282,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

The total amount recovered has been estimated at $482,000 USD.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Prevention Policies

Funds should be stored offline in a multi-signature wallet whenever possible. All wallet setups should be reviewed by two separate validators to ensure security. Hot wallets can be protected collectively through an industry insurance fund.