RoyTInHouston 
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 14:34:49
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post edited by RoyTInHouston - 2017/12/15 19:22:11
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bcavnaugh
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 14:42:28
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This Thread Is Tuning Into a Political Tax Discussion. But I do not think that this is the End of the Discussion at least until a MOD Locks it down for being so. Also only the OP can say whether or not that it is the End of the Discussion. Also time to get back on Topic of "Nicehash has been compromised, all funds GONE".
post edited by bcavnaugh - 2017/12/13 15:09:57
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SirAce135
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 15:04:23
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RoyTInHouston
Not to beat this thread to death, apologies to monitors, but this a rather important topic.
Question: Are you “working” when you buy and sell stocks (or any other investment vehicle)?
Answer: For TAX purposes you are NOT. 100% of your “income” is considered CAPITAL GAINS for tax purposes. The 1 (ONE) exception to this is if your are investing as an employee or contractor OTHER PEOPLES MONEY (hedge fund manager or any other asset or investment third party or employee that takes a SALARY).
Anyone who invests their own money using their own resources, however hard you may “work”, is considered UNEMPLOYED for income tax purposes. You don’t have a job from a tax perspective. Period. Buying and selling financial assets WITH YOUR OWN MONEY is not an income tax provoking activity. Period.
“Mining” for crypto with your own assets makes you an employee of no one (not even yourself - and that is important). I suppose one could really try hard and force the IRS to recognize you as a taxable employee —- but why??? Non-financial businesses fight tooth and nail to claim everything they can as capital gains (and not income) with the IRS for obvious reasons.
The IRS will cheerfully consider you an “employee” if you sit there and convince them that you are - but thats a little like a chicken convincing a fox how tasty she is.
You are a PRIVATE INVESTOR who is overseeing your portfolio. End of discussion.
I agree with you 100% This is my understanding of it, and it was the understanding of my CPA and Tax Attorney when I asked them about it. Also, I don't think this is really political. Its just interpreting tax code. Just my humble opinion though :) Cheers!
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Ranmacanada
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 15:45:18
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Well funds have been moved from the wallet that was holding the bitcoin that the stolen funds were in. 664 bitcoins moved and 50 of them were sent to someone it appears to be as their "cut" of the operation. Now all they need to do is convert it to monero and poof, it's no longer traceable. https://blockchain.info/address/1EnJHhq8Jq8vDuZA5ahVh6H4t6jh1mB4rq
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SirAce135
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 16:10:39
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Ranmacanada
Well funds have been moved from the wallet that was holding the bitcoin that the stolen funds were in. 664 bitcoins moved and 50 of them were sent to someone it appears to be as their "cut" of the operation. Now all they need to do is convert it to monero and poof, it's no longer traceable. https://blockchain.info/address/1EnJHhq8Jq8vDuZA5ahVh6H4t6jh1mB4rq
Wow, that's so crazy man. Saw that transaction. Besides the huge heist transactions there were also some smaller ones afterwards, wonder if additional wallets got sacked.
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RoyTInHouston
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 16:34:01
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post edited by RoyTInHouston - 2017/12/15 19:22:30
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ty_ger07
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 18:50:53
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So... Nicehash CTO Matjaz Skorjanc. Any speculation? Given his criminal background, given the fact that he authored the Nicehash system's code during the same period of time that he was proven to be authoring illegal code or otherwise assisting criminals with theft and money laundering, and given his track record of purposely helping criminals in exchange for a cut in return, what do you think? How likely is it that Matjaz Skorjanc was not involved in this hacking operation's break-in and learning-of Nicehash's internal infrastructure in the period of hours in order to pull off this fantastic heist?
post edited by ty_ger07 - 2017/12/13 18:59:36
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Chris21010
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 19:22:56
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Chris21010
the thing is the IRS considers your "work" (hashing) as a service that is being paid to you. thus whenever you mined a coin you are being paid for work being done and that is classified as income.
RoyTInHouston
Question: Are you “working” when you buy and sell stocks (or any other investment vehicle)?
how... in simple math: hashing = work earning crypto for work = income income = taxes trading crypto for other crypto or fiat cash = capital gains capital gains = taxes i'll stop here as your ineptitude to actually read and understand a sentence leaves room for improvement. though you are great at drawing your own elaborate conclusions to what you think is written. ipkha
So, I should just claim my cashouts as misc income ?
you can probably get away with this as long as it is not a substantial amount. NOW, as for the stolen BTC moving around, that was inevitable and honestly i do not care what happens with those coins at this point. nicehash just needs to follow up on what they say and get their services back online and enact a plan to reimburse those whose wallets got robbed. and possibly enacting some new countermeasures as well as a new wallet system would be ideal.
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bill1024
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 21:00:55
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So if the founder has a criminal background, missing 60mil+ where would he get that kind of money to replace the lost $$
It's gone, fahgetaboutit!!
Do they send you a form 1099 or form K something when they pay you more that the 600 threshold?
They want their tax money for sure. Even bartering labor you are required to declare. I install your boiler and you shingle my roof.
How will they know? They won't if you don't tell them.
Just because Newegg does not collect sales tax dose not mean you don't declare internet purchases on you state form.
That is if your state has a sales tax.
Life is too short to carry a cheap pocket knife 
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RoyTInHouston
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 22:06:49
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post edited by RoyTInHouston - 2017/12/15 19:23:04
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RoyTInHouston
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 22:28:02
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post edited by RoyTInHouston - 2017/12/15 19:23:32
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bill1024
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Re: Nicehash has been compromised, all funds GONE.
2017/12/13 23:19:23
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Those millions are gone, gone fishing in the Bahamas right off the beach, sippin a tall cool beverage with the babes.
Life is too short to carry a cheap pocket knife
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QuintLeo
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Re: Nicehash has been compromised, all funds GONE.
2017/12/14 04:52:38
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If you never received the coin, it's not income - even by the current Byzantine standards the IRS has promulgated for Cryptocoin.
Nicehash is apparently working to get back up as a service again, per the post on their webpage, which "enhanced security" whatever that is supposed to mean.
Have to wonder how they got hacked and WHAT got hacked in the first place though.
I lost ballpark $300-$400 I think in "mined but not paid out" coin, plus another couple days worth of mining on some of my rigs (the Scrypt rigs auto-switched to my backup LiteCoinPool) before I figured out they weren't coming back up for a while and got ALL of my rigs switched over to other options.
Coupled with an issue I'm currently having with Bittrex and their support having turned into a Poloniex-level quagmire, it's making this month a VERY marginal PITA.
Now that vorsholk has stopped his abuse, I'm returning to folding. I no longer MOO due to abuses by certain "whales" in the Gridcoin community - so I now work the Distributed.net project directly again. 
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SirAce135
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Re: Nicehash has been compromised, all funds GONE.
2017/12/14 07:49:19
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QuintLeo
If you never received the coin, it's not income - even by the current Byzantine standards the IRS has promulgated for Cryptocoin.
Nicehash is apparently working to get back up as a service again, per the post on their webpage, which "enhanced security" whatever that is supposed to mean.
Have to wonder how they got hacked and WHAT got hacked in the first place though.
I lost ballpark $300-$400 I think in "mined but not paid out" coin, plus another couple days worth of mining on some of my rigs (the Scrypt rigs auto-switched to my backup LiteCoinPool) before I figured out they weren't coming back up for a while and got ALL of my rigs switched over to other options.
Coupled with an issue I'm currently having with Bittrex and their support having turned into a Poloniex-level quagmire, it's making this month a VERY marginal PITA.
After this breach, what pool did you end up going with. I was actually considering jumping in with Nicehash right before this news broke. Now I'm considering alternatives.
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bill1024
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Re: Nicehash has been compromised, all funds GONE.
2017/12/14 10:40:04
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If knowing the history of the founder/developer and knowing 60+ million was stolen.
If anyone is going to go back and do it over again. I have a bridge in Brooklyn I will sell you for 500$
You will make 2,500 - 3000$ dollars a day after paying the toll collectors. Really, honest engine.
Life is too short to carry a cheap pocket knife
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kram36
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Re: Nicehash has been compromised, all funds GONE.
2017/12/14 11:09:19
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bill1024
If knowing the history of the founder/developer and knowing 60+ million was stolen.
If anyone is going to go back and do it over again. I have a bridge in Brooklyn I will sell you for 500$
You will make 2,500 - 3000$ dollars a day after paying the toll collectors. Really, honest engine.
+1000
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bcavnaugh
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Re: Nicehash has been compromised, all funds GONE.
2017/12/14 11:26:00
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kram36
bill1024
If knowing the history of the founder/developer and knowing 60+ million was stolen.
If anyone is going to go back and do it over again. I have a bridge in Brooklyn I will sell you for 500$
You will make 2,500 - 3000$ dollars a day after paying the toll collectors. Really, honest engine.
+1000
+10000 Miners are looking at forgiving their action  and giving them even more money. As this action and 99.9% of Mining is done on Foreign Soil. I will offer the same for the Brooklyn Bridge and even Move it to the location of your choice. I guess that is why FDIC is no help here. [You Just Got To Love The Tabloids]
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QuintLeo
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Re: Nicehash has been compromised, all funds GONE.
2017/12/16 11:55:32
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Given how much more I made on my Scypt mining via Nicehash vs what I would have earned with the same hashrate anywhere else the last 3 months or so, even if I never see anything out of my "lost" last partial week of mining with them I'm STILL way ahead.
I ended up pointing my NVidia farm at ZEC mining via Flypool for now - which is where most of it was at anyway.
Scrypt auto-reverted to my long-time LiteCoinPool backup pool.
My AMD farm was unaffected (except the Vega on Monero) as it was all working BOINC/Moo Wrapper anyway (and the Vega is back over there for now, but I need to redo that machine to optimise for BOINC work).
99% of mining is NOT done on foreign soil - unless you are from some small or "not as tech savvy" country.
While the majority of cryptocoin mining (and Bitcoin in perticular) seems to be done in China, there ARE large farms elsewhere - like Central Washington in the US, Labrador and Quebec in Canada, various sites in Russia, at least one major farm in Sweden (the ex-KNC facility is now owned by Caanan Creative, by report), and I forget where Bitfury has it's big farms but they seem to be mosly Eastern Europe or Georgia (the country, not the US state) - and that's just KNOWN or ANNOUNCED locations that have major cryptocoin mining farms.
At one time the owner of MegaBigPower (in the Wenatchee Washington general area) stated a goal of "mining 5% of all Bitcoin" - and for a quite a while they DID manage 3-4%, not sure where they stand now but I suspect they are moving more to hosting with their current GigaWatt project.
Now that vorsholk has stopped his abuse, I'm returning to folding. I no longer MOO due to abuses by certain "whales" in the Gridcoin community - so I now work the Distributed.net project directly again.
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bcavnaugh
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Re: Nicehash has been compromised, all funds GONE.
2017/12/16 12:12:26
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OK Then 95%  + or - 4.9%
post edited by bcavnaugh - 2017/12/16 12:18:08
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bill1024
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Re: Nicehash has been compromised, all funds GONE.
2017/12/16 16:28:54
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Are the authorities looking into this theft? Will millions involved I would think the FBI, BCI, FTC, HLS, IRS at least someone is on the case.
Is there going to be a class action lawsuit of some sort? I would think so with the amount missing.
Someone should be thrown in prison for 7.5 to 15 years at least over this.
Life is too short to carry a cheap pocket knife
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bcavnaugh
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Re: Nicehash has been compromised, all funds GONE.
2017/12/16 16:42:19
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All info below is "Public Information" You would think (nicehash.com [104.20.158.21]) Located out in California. https://www.reddit.com/r/NiceHash/ Domain Name: NICEHASH.COM Registry Domain ID: 1851741852_DOMAIN_COM-VRSN Registrar WHOIS Server: whois.godaddy.com Registrar URL: http://www.godaddy.comUpdated Date: 2016-04-25T13:51:42Z Creation Date: 2014-03-24T13:28:13Z Registry Expiry Date: 2018-03-24T13:28:13Z Registrar: GoDaddy.com, LLC Registrar IANA ID: 146 Registrar Abuse Contact Email: abuse@godaddy.comRegistrar Abuse Contact Phone: 480-624-2505 Domain Status: clientDeleteProhibited https://icann.org/epp#clientDeleteProhibitedDomain Status: clientRenewProhibited https://icann.org/epp#clientRenewProhibitedDomain Status: clientTransferProhibited https://icann.org/epp#clientTransferProhibitedDomain Status: clientUpdateProhibited https://icann.org/epp#clientUpdateProhibitedName Server: edna.ns.cloudflare.comName Server: jack.ns.cloudflare.comDNSSEC: signedDelegation DNSSEC DS Data: 2371 13 2 % APNIC found the following authoritative answer from: whois.arin.net
#
# ARIN WHOIS data and services are subject to the Terms of Use
# available at: https://www.arin.net/whois_tou.html
#
# If you see inaccuracies in the results, please report at
# https://www.arin.net/public/whoisinaccuracy/index.xhtml
#
#
# The following results may also be obtained via:
# https://whois.arin.net/rest/nets;q=104.20.159.21?showDetails=true&showARIN=false&showNonArinTopLevelNet=false&ext=netref2
#
NetRange: 104.16.0.0 - 104.31.255.255
CIDR: 104.16.0.0/12
NetName: CLOUDFLARENET
NetHandle: NET-104-16-0-0-1
Parent: NET104 (NET-104-0-0-0-0)
NetType: Direct Assignment
OriginAS: AS13335
Organization: Cloudflare, Inc. (CLOUD14)
RegDate: 2014-03-28
Updated: 2017-02-17
Comment: All Cloudflare abuse reporting can be done via https://www.cloudflare.com/abuse
Ref: https://whois.arin.net/rest/net/NET-104-16-0-0-1
OrgName: Cloudflare, Inc.
OrgId: CLOUD14
Address: 101 Townsend Street
City: San Francisco
StateProv: CA
PostalCode: 94107
Country: US
RegDate: 2010-07-09
Updated: 2017-02-17
Comment: All Cloudflare abuse reporting can be done via https://www.cloudflare.com/abuse
Ref: https://whois.arin.net/rest/org/CLOUD14
OrgTechHandle: ADMIN2521-ARIN
OrgTechName: Admin
OrgTechPhone: +1-650-319-8930
OrgTechEmail: rir@cloudflare.com
OrgTechRef: https://whois.arin.net/rest/poc/ADMIN2521-ARIN
OrgAbuseHandle: ABUSE2916-ARIN
OrgAbuseName: Abuse
OrgAbusePhone: +1-650-319-8930
OrgAbuseEmail: abuse@cloudflare.com
OrgAbuseRef: https://whois.arin.net/rest/poc/ABUSE2916-ARIN
OrgNOCHandle: NOC11962-ARIN
OrgNOCName: NOC
OrgNOCPhone: +1-650-319-8930
OrgNOCEmail: noc@cloudflare.com
OrgNOCRef: https://whois.arin.net/rest/poc/NOC11962-ARIN
RAbuseHandle: ABUSE2916-ARIN
RAbuseName: Abuse
RAbusePhone: +1-650-319-8930
RAbuseEmail: abuse@cloudflare.com
RAbuseRef: https://whois.arin.net/rest/poc/ABUSE2916-ARIN
RNOCHandle: NOC11962-ARIN
RNOCName: NOC
RNOCPhone: +1-650-319-8930
RNOCEmail: noc@cloudflare.com
RNOCRef: https://whois.arin.net/rest/poc/NOC11962-ARIN
RTechHandle: ADMIN2521-ARIN
RTechName: Admin
RTechPhone: +1-650-319-8930
RTechEmail: rir@cloudflare.com
RTechRef: https://whois.arin.net/rest/poc/ADMIN2521-ARIN
#
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# available at: https://www.arin.net/whois_tou.html
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post edited by bcavnaugh - 2017/12/16 16:48:43
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ipkha
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Re: Nicehash has been compromised, all funds GONE.
2017/12/16 20:20:13
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DNS records are completely useless these days. All that shows is they registered with the crappiest/cheapest DNS provider and best DDOS protection provider. No substantive info ever gets out in there these days and I doubt that godaddy cards to check any info they might have either.
Of course cloudflare is notorious for protecting cyber criminals and ignoring abuse complaints.
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bcavnaugh
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Re: Nicehash has been compromised, all funds GONE.
2017/12/17 00:35:51
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ipkha
Of course cloudflare is notorious for protecting cyber criminals and ignoring abuse complaints.
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Slegir
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Re: Nicehash has been compromised, all funds GONE.
2017/12/19 07:20:43
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Chris21010
i lost a couple hundred as i had two 1080ti's running last month so i had real data on its revenue compared to merged folding, which nicehash was actually higher. it is a bummer but now i have a tax writeoff for the amount stolen.
No Tax Write Off for Non-Taxable Income form what I have read. bcavnaugh
Chris21010
i lost a couple hundred as i had two 1080ti's running last month so i had real data on its revenue compared to merged folding, which nicehash was actually higher. it is a bummer but now i have a tax writeoff for the amount stolen.
No Tax Write Off for Non-Taxable Income form what I have read.
Mining is 100% taxable, if you do or not is the risk you run.
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RoyTInHouston
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Re: Nicehash has been compromised, all funds GONE.
2017/12/19 19:57:17
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If you wish to call or write the IRS and provide them with your entirely secret crypto account number - that is your prerogative. Scientists are hard at work perfecting head transplants so that people like me can get rid of our old bodies and able brains and install said brains into those who are younger with more able bodies but lacking said brains and eager to pay crypto-currency taxes ;-)
post edited by RoyTInHouston - 2017/12/19 19:58:30
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QuintLeo
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Re: Nicehash has been compromised, all funds GONE.
2017/12/20 13:59:57
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Cloudflare is not the best DDOS provider - they get totally blown away by Akami.
They're one of the CHEAPEST DDOS services - and it could be argued the crappiest of the major ones.
That "Nicehash address" out of California is actually their Cloudflare access point - there is nothing in that DNS record that shows were Nicehash ITSELF is at (back of my mind is saying Hong Kong?).
2 years ago I could have complained in person to GoDaddy - their HQ is in Cedar Rapids, and I only lived perhaps 8 miles away at the time.
Never dealt with them though, and their rep tends to vary depending on who you talk to but generally NOT a good one.
Now that vorsholk has stopped his abuse, I'm returning to folding. I no longer MOO due to abuses by certain "whales" in the Gridcoin community - so I now work the Distributed.net project directly again.
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