Bitcoin Gold Delisted From Bittrex

Bitcoin Gold Delisted From Bittrex

Bitcoin Gold has been delisted from Bittrex, one of the largest cryptocurrency exchanges in the world. Bittrex removed Bitcoin Gold from its trading platform after the developers declined to pay half the damages Bittrex suffered because of a complex and multi-stage cybercrime attack earlier this year.

As per a statement from the Bitcoin Gold team, Bittrex asked BTG to pay 12,372 BTG or approximately $256,000 as reparations for the attack. However, the Bitcoin Gold team declined to pay this amount because according to them, their private assets cannot be used for covering ‘a private company’s losses from their own security failures.’

According to Bitcoin Gold maintainers, they did everything on their part to prevent the attack, however, they do not have the legal power to intervene inside a company such as Bittrex.

@btg_joseph tweeted,

I respect your opinion but i disagree. Our chain did not have a vulnerability that was exploited to attack Bittrex. We also warned Bittrex there is an attack going on and publicly recommended exchanges to up confirmations. They chose to ignore the warning.

@crypto_briefing tweeted,

Who blinks first? @BitcoinGold set to be delisted by @Bittrex over failure to reach a compensation agreement – but who’s really losing here? The squabble has hit the headlines, but probably won’t make a major long-term difference to #BTG or the exchange.

The hack revolving this dispute took place between May 18 and May 22  and according to the Bittrex team the hack was a combination between a 51% attack and a double spend attack.

According to Bitcoin Gold experts, hackers rented services through the NiceHash cryptocurrency mining market to overwhelm the BTG network and take control over more than half the BTG computational hash rate. This is what is termed as a 51% attack by cryptocurrency experts – a situation in which hackers can modify transaction information across the entire Bitcoin Gold network.

As per reports by the BTG team, during the three and a half days when the hackers attacked the BTG system, they deposited a large amount of Bitcoin Gold funds at various cryptocurrency trading platforms. Then, immediately after these deposits, the hackers converted them into another cryptocurrency and then transfer the amount into new accounts at other exchanges.

Then, once the funds were converted into another cryptocurrency and transferred completely, the hackers use their 51% control over the network to reverse the BTG initial deposit and therefore invalidating the transaction and returning the original Bitcoin Gold funds to the personal wallets. This second stage is known as a double spend attack.

When the hack was ongoing, BTG repeatedly advised cryptocurrency exchanges to increase transaction confirmation security, something that would make it costlier for hackers to carry out these transactions.

Most trading platforms either were able to stop the attacks in time or dealt with the losses on their own if they failed to follow up with the warnings given by the BTG team. However, according to BTG, Bittrex is the only trading platform that did not follow normal practices and on the other hand, tried to convince Bittrex maintainers to pay for the damages.

The Bitcoin Gold team stated that this delisting doesn’t affect their business much as Bittrex was never a big exchange for them.

Read Also:Bitcoin Gold supported by Mobi Wallet

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Pallavi Janiani

Pallavi Janiani

Content Writer
I am studying Business and psychology at the university of Minnesota. Apart from learning about how the economy and the human mind works, I spend my time dancing with my bollywood fusion team, reading, writing, traveling, usually with a cup of coffee in my hand.