Bitcoin Gold has been delisted from Bittrex after refusing to meet demands to cover losses incurred by the exchange during the May 2018 ‘double-spending’ hack that saw almost US$20 million in BTG disappear from several cryptocurrency exchanges

The root cause of the feud between the two crypto entities revolves around who is to blame for the aforementioned heist. The team behind Bitcoin Gold says that it will not cough up the cash to compensate for security flaws the exchange was reportedly already aware of.

The defiant statement came in a lengthy announcement from Bitcoin Gold’s management team in which the development team confirms that Bittrex has decided to delist BTG. The announcement also reveals that the team does not expect Bittrex’s decision to have a substantial effect on its ecosystem.

Over on Bittrex, there was a much less emphatic confirmation that BTG was being removed from the exchange. The only hard evidence that can be found is on its “Pending Market Removals Page,” where BTG is scheduled for removal this month on the 14th of September.

How Much Was Bittrex Claiming it Lost During the Heist?

The exact amount taken from Bittrex has not been 100% confirmed, but it is said that initially, the exchange demanded 12,372 BTG (US$256k) as compensation. That figure was later reduced to 6,000 BTG (US$127k) when Bittrex said that it was willing to cover some of its losses using its existing BTG reserves.

Despite the reduction in the amount asked of Bitcoin Gold’s team, the individuals behind the Bitcoin fork stuck to its guns by refusing to acknowledge accountability. The result of both sides failing to come to an amicable agreement has inevitably lead to Bitcoin Gold being wiped off Bittrex’s exchange.

A Rare ’51 Percent Attack’ Instigated The Disagreement

In May 2018, it was reported that 388,000 BTG (US$18 million) was stolen in what is known as a ‘51% Percent Attack’. The hijackers used rented computing power to falsify the BTG ledger, giving them the ability to use a “double-spending” tactic. As a result, exchanges like Bittrex were tricked into sending more coins than they should have.

Bitcoin Gold Versus Bittrex – Who Is To Blame?

Bitcoin Gold’s development group has officially said Bittrex knew about the risks prior to the attack. The cryptocurrency team stated that everyone knows ‘double-spends’ are possible whilst using the PoW (Proof of Work) model, which is what Bittrex’s system uses. From Bitcoin Gold’s point of view, a private company’s internal security policies cannot be blamed on potential flaws in the Bitcoin Gold architecture.

Taking the defense of Bitcoin Gold’s team into account, Bittrex has clearly blamed the heist on the vulnerability of BTG’s ledger.

Bitcoin Gold Delisted From Bittrex Due To Risk

After the most recent attack on BTG, Bittrex’s management team obviously sees the cryptocurrency as too risky. The fact that Bitcoin Gold is unwilling to suffer any personal loss for the heist means the continuation of offering BTG does not make sense.

For both entities, the only way to solve this issue is to end their short-lived business relationship. It seems both Bittrex and Bitcoin Gold appear to at least agree on this point. as a result, in September (next month), we will see the discontinuation of BTG on Bittrex’s cryptocurrency exchange platform.

My name is James Donaghue. I am an SEO freelance consultant and investor in blockchain technologies. I am a proud father, my hobbies include football (soccer), tennis, swimming, and cycling, and I also love travelling. Another hobby of mine is staying up to date with the financial markets - I used to work within the financial sector as an IT engineer setting up Reuters and Bloomberg market data feeds. During that time I learned a lot about the financial industry and came across the blockchain in its early conception. It wasn't until around 2015 I really started to take a keen interest in its development. Since then I have been studying the progress of the blockchain and investing in cryptocurrencies. I now contribute news, data, and reviews about ICOs, blockchain solutions, and cryptocurrencies regularly. I truly believe that disruptive blockchain tech will be an integral part of all of our futures. As such, I plan to continue following trends, breaking news, and the future development of blockchain solutions across all industries.


Please enter your comment!
Please enter your name here