Projects like TRON (TRX) have had a positive 2018; innovations, acquisitions, and public approval will ensure that for a company. Bitcoin Gold (BTG), a fork of the Bitcoin (BTC) blockchain, however, has seen the inverse.
Bitcoin Gold’s Hacks and Bittrex’s Response
The well-known fork has been on the receiving end of multiple hacks, resulting in around $20 million worth of stolen assets from various cryptocurrency exchanges, including Bittrex. The most notable of the assaults happened in May, when assailants took over 51% of the proof-of-work consensus algorithm in a “double-spend attack”. Nearly $18.6 million worth of BTG was stolen before hackers reverted the ledger to remove the recordings.
It’s unknown how much of the stolen money was taken directly from Bittrex, but the team at Bitcoin Gold claims they have received a compensation request of 12,000 BTG ($265,000). As reported by The Next Web, BTG made a statement on the occurrence:
“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, and that if we did not, we would be delisted.”
The Bitcoin Gold team then goes on to defend their position, saying, “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.”
The team has until September 14th to pay the requisitions or they will be delisted.
Suggested Reading : Learn how Bittrex compares to other cryptocurrency exchanges.
Long-Term Effects
How this will affect Bitcoin Gold in the long-term is yet to be seen. As mentioned, the project has already had a bad year, with prices falling drastically over the course of 2018. It doesn’t help that the project also lost around $3.3 million worth of assets last year when investors were scammed via a fake wallet.
Back then, Bitcoin Gold was in the top 5 cryptocurrencies via market cap. As of this writing, the fork is in 29th.
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