Bitcoin Gold Has Falling Out With Bittrex For Not Compensating After Hack

bitcoin gold

The Bittrex cryptocurrency exchange has delisted Bitcoin Gold (BTG) from its platform after the developers or team behind the cryptocurrency refused to compensate half of the damages suffered by Bittrex after a hack that took place earlier this year.

Bitcoin Gold is no longer available on Bittrex after the falling out with the team behind the cryptocurrency and this could be a major blow considering that Bittrex is one of the major cryptocurrencies in the world. The hack that led to the loss of a significant amount of cryptocurrencies as a result of security flaws. The Bitcoin Gold team released a statement saying that the cryptocurrency exchange has requested them to pay 12,372 BTG which is equivalent to about $256,000 as compensation for the malicious hack.

?Bittrex informed us that they make this decision because the BTG team would not ?take responsibility for our chain,”?said the BTG team.

The BTG team refused to pay the amount on the premise that it does not use private assets to cover the losses of a private company especially when the losses suffered are as a result of security flaws in their platform. The team also claims that it had done everything that was necessary to help protect trading platforms from cyber-attacks.

How the hack happened

The malicious attack on Bittrex happened between May 19 and May 22 and the hackers reportedly managed to achieve their objective through double spend and 51% attacks. The hackers are believed to have rented out servers using the NiceHash cryptocurrency mining market through which they managed to take control of half of the network as well as its computational hashrate by overwhelming it.

The hackers then managed to convert the BTG into other cryptocurrencies after successfully hacking the network, and then they transferred the stolen cryptocurrencies into other accounts on other exchanges. This is one of the many cryptocurrency exchange hacks that have taken place just this year alone, thus raising more concerns about the safety of cryptocurrency exchanges. Meanwhile, the recent falling out between Bitcoin Gold and Bittrex will most likely affect the ability of the cryptocurrency to survive in the future.


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