Back

Bittrex to Drop BTG After Massive Hack

The decision was arrived at following a BTG hack that resulted in loss of millions. 

Bittrex Resolves to Drop BTG

Bitcoin Gold is expected to be deregistered from exchange platform Bittrex. The deregistration will take place mid this month after a May hack that occurred on BTG. The hack led to a loss of $18 million.

BTG is a hard fork of bitcoin that was launched in 2017. In May, BTG suffered a hack described as double spending. During the incident, hackers gained control of over 51% of the BTG hash rate. The hackers earned the money through fleecing a number of exchanges including Bittrex.

Responding to the attack BTG announced that hackers deployed a combination of 51% while defrauding a number of trading platforms. According to an official explanation, exchanges became an easy target because they permit huge deposits in an automated system. Here, traders are able to exchange numerous cryptos and instantly withdraw.

In this case, the unidentified attacker was depositing huge BTG, while remitting the  funds to an individual storage. The transaction turned invalid by the time affected exchanges realized. The hacker had utilized the money, making it hard for exchanges to make reversals.

Bittrex Seeks Compensation Over Hack

Notably, Bittrex has remained mum over the amount it lost following the hack. Unconfirmed reports indicate that the platform wants over 12, 000 BTG in compensation. The exchange has pointed a finger at BTG’s PoW consensus as of the main reason behind the hack. However, BTG answered back by stating that it is not to blame for security policy in private entities. BTG called on Bittrex to tackle risks and they should take responsibility for its security.

BTG developers have already announced there is a fork upgrade platform over risks on it blockchain. The May attack is not the first to be effected on BTG. Last year a BTG storage later identified as fake illegally obtained keys amounting to $3.3 million.

Currently, BTG is valued at $21.70 with a market share of $373 million while Bittrex is planning to roll out industry standards.


2 years ago

Start Weekly Digest

Similar news