Hey, are there any Bitcoin Gold hodlers out there? We got some news for you – Bittrex is delisting Bitcoin Gold from its platform. The reason for this unexpected turn of events is that the popular Bitcoin hard fork has been a subject to a variety of hacker’s attacks in recent times.
In fact, the internet bad boys managed to snatch some $20 million worth of BTG. If you remember, the online pirates hijacked enough computing power to smuggle 51% of the total hash power in May. Back then, Bittrex was one of the exchanges that suffered from the attack. During the fiasco, the culprits stole over 388,000 BTG, which at that time was worth roughly $18 million dollars. They ultimately abused exchanges, tricking them to transfer more coins than necessary thanks to a method called “double-spending”.
Though it never became clear how much Bittrex had lost during the attack, according to the Bitcoin Gold developing team, the exchange asked for a 12,000 BTG ($255,000) compensation. It later posted an official statement, an excerpt from which reads:
Bittrex informed us that they make this decision because the BTG team would not “take responsibility for our chain,” and that taking responsibility meant paying Bittrex 12,372 BTG to cover the loss they incurred. They later informed us they would cover part of the loss from their own BTG reserves and requested we pay the remaining ~6,000 BTG ($127,000), and that if we did not, we would be delisted.
Unfortunately, the case only goes to show that blockchain technologies are not as safe as we think they are. The BTG team refuses to take the blame and instead claims that it is the Proof-of-Work algorithm, which powers Bitcoin Gold that failed.
The Bitcoin Gold team is not responsible for security policy within private entities like Bitrex [sic]; those who earn revenue running a private business must manage the related risks and are ultimately responsible for their own security.
This is not the first time Bitcoin Gold takes a blow due to a hacker’s attack. Last year, someone developed a fake BTG wallet, thus successfully stealing $3.3 million worth in BTG. Whether Bittrex’s action will affect the price of Bitcoin Gold or not we cannot tell. But according to CoinMarketCap, its value remains stable despite the bad news.
Of course, none of this would have happened if both exchanges and traders relied more on cold wallets.