BTG Removed from Bittrex in September After $18 Million Hack

Bittrex, a crypto exchange, is planning to remove BTG, one of Bitcoin's hard forks, from it’s trading list due to their refusal to compensate for a $18 million hack that occured last May.

The 11 year-old fork  persisted through a hacker’s attack where users were surprised with double-spending.  Hackers were able to steal over 50% of the BTG hashrate. Consequently, over $18 million worth of BTG was collected from the crypto exchanges.

The hacker appeared to chose cryptocurrency exchanges specifically as a target because of their automated acceptance process of large transactions. This way, the hacker can easily change the funds into different tokens before withdrawal.

Details of the Hack

The hacker used a simple method. He made BTG deposits on the platforms and sent the same amount to his personal wallet. Afterwards, he withdrew the funds before the exchange took notice of the faulty transaction.

Bittrex could not get an accurate number to state the exact amount of the stolen BTG. They still continue to demand a compensation of $255,000 worth of BTG from Bitcoin Gold.

Bitcoin Gold responded to Bittrex, denying their responsibility for Bittrex’s security system, adding that a cryptocurrency exchange should be capable of handling their security system and owning up to any faults in their system. The developers, however, worked out a new upgrade that would prevent the said issues from happening again. This is not BTG’s first time to get hacked, however. It is known that $3.3 million worth of crypto were stolen by an anonymous wallet in 2017.

At the moment, BTG is traded at the price $21.70, while standing at $373 million in terms of market capitalization, ranking it number 30 among other cryptos.

Bittrex, on the other hand became part of the “Virtual Commodity Association Working Group”, which is a non-government alliance between cryptocurrency firms that would create community regulations for cryptos, making the community in charge of fighting illegal use of cryptocurrency.

2 years ago

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