Bittrex to delist bitcoin gold

September 04, 2018
Chris Wheal

Bitcoin gold announced that crypto exchange, Bittrex, will delist it after several hacking incidents in which the latest resulted in an $18m loss.

In a statement released by bitcoin it said the exchange wanted a substantial amount of  12,372 BTG to remain listed but bitcoin gold declined.

The crytocurrency does not anticipate a substantial impact as a result of Bittrex’s action and wrote, “Bittrex has not been a top liquidity provider for BTG in recent months (current top exchanges include HitBTC, Bithumb, Binance, Bitinka, and Bitfinex; Bittrex markets represent a small fraction of our volume at this time.)”

51% attack leads to delisting

BTG defended its response to the 19 May hacking incident where bitcoin gold was targeted on several exchanges. The hacker assumed control of more than 50% of  bitcoin’s network total mining hashrate altering transactions on its blockchain.

The hack attack in May saw malicious parties use rented power from NiceHash to perform 51% attacks which they used to attack exchanges with double-spends.

BTG says “Everyone knows 51% attacks and Double-Spends have always been a known risk in the PoW blockchain world. The attacks on exchanges in May were not the result of any fault or flaw in the BTG blockchain or code (which are essentially the same as the Bitcoin code.) The attackers rented massive hashpower through the NiceHash rental market (perhaps aided by their own mining pools and/or ASICs) – the attackers bear responsibility for their attacks.”

The BTG team said that Bittrex “despite all our efforts to assist them, and despite the fact that the danger is now over” still saw fit to delist the coin.

Dispute over covering loss

Bittrex said the BTG  team did not “take responsibility for our chain,” and required BTG to pay 12,372 BTG to cover the loss they incurred which was later reduced to 6000 BTG or the coin would be delisted.

BTG said although the amount appeared small, it was still a significant fraction of the available funds from the Endowment which supports the Bitcoin Gold project.

A BTG loan offered from the Endowment to help Bittrex address short-term liquidity problems was declined and payment insisted upon. The BTG Board after consideration declined to make a payment for the express “purpose of covering a private company’s losses from their own security failures.” And added that it was not responsible for security policy within private entities like Bitrex; those who earn revenue running a private business must manage the related risks and are ultimately responsible for their own security.

Bitcoin Gold says it is working with exchange partners and have made a successful Network Upgrade hardfork on July 3rd, mitigating the risk. Most exchanges have re-opened their wallets and reduced confirmation requirements to pre-Upgrade levels it said.

 

 

 

 

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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