Hash Power Broker Nicehash Denies It Enables 51% Attacks on ETC Network

Hash power broker Nicehash denies that it enables bad actors to use its hash renting platform to launch 51% attacks on blockchain networks. The broker insists that it does not have any way of monitoring or determining which blockchain is benefitting from a particular algorithm hash data. Only buyers of hashrate know this, as well as pools that receive such hashpower.

The comments by Nicehash are in response to pointed allegations from Ethereum Classic (ETC) Labs developers stating that the hash power used to initiate the 51% attacks on their network was purchased from the broker. To further support their allegations, the ETC devs claim an unnamed Nicehash cofounder has already been convicted in Slovenia on similar offenses.

In a statement released September 8, the Nicehash team does admit that “its hash-power might be abused by the attacker’s pool.” Still, the broker says it takes the “necessary steps to prevent or help prevent market disruptions, market manipulations, or misuse of the NiceHash hash-power marketplace.”

In cases where there are complaints against the hashing power coming from its platform, the broker says:

“Upon receiving or identifying sufficient evidence of activities violating our Terms of Service, Nicehash takes all the necessary steps to prevent further abuse or misuse of Nicehash Services.”

Furthermore, the broker’s statement implies a readiness to cooperate with law enforcement to “ensure that further investigations and undertakings are conducted swiftly and lawfully.”

The broker’s remarks appear to be aimed at assuaging the ETC Labs devs who on August 31 said they are “working with authorities in relevant jurisdictions” on the issue.

However, the language used in the Nicehash press release points to the readiness to fight. In the statement, Nicehash officials clarify that such investigations must be carried out “according to our Terms of Service and Privacy Policy.” The statement, however, does not elaborate on…

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