This weekend, Cloudminr.io, once hailed as one of the largest bitcoin mining operations on the web, went offline after a supposed hacking attack that stripped the company of its bitcoins and revealed thousands of users' personal information.
Payment Problems
The hacking attack appears to have begun on July 6, when the company didn't send payment to many of its miners due to concerns that the payments were being sent to inaccurate addresses. The company claimed that hackers had replaced miners' addresses with their own, and part of the bitcoins being sent were going to the wrong wallets.
Data Breach
This weekend, the problem escalated when the site's page was revised to show an advertisement offering to sell the usernames and passwords for 79,267 of the sites members. Cloudminr has since gone offline, but some of the user information is still available through web caches.
Ponzi Scheme
Cloudminr has been accused by many as being a mining Ponzi scheme, and the site's recent troubles have only exacerbated those rumors. Many believe the site will never make its way back online, meaning that affected users will be left without compensation and exposed to hacking attacks.
Precautions Needed
Those who were using Cloudminr have been advised to change their passwords for other wallets and websites, as many are believed to have been using the same password that was stolen for other purposes on the web.
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