Bittrex, one of the largest cryptocurrency trading platforms, removed the Bitcoin Gold (BTG) from its trading platform on the weekend after BTG maintainers refused to pay half of the damage suffered by Bittrex during a multi-complex cyberattack phase at the beginning of this year.
According to a statement from the BTG team, Bittrex asked the BTG team to pay 12,372 BTG (~ $ 256,000) as reparations for the attacks.
The BTG team refused to pay the sum request, stating that their private assets can not be used to cover "the losses of a private company from its own security failures."
BTG maintainers said they had done everything possible to help the trading platforms prevent attacks, but did not have the legal power to intervene in a private company like Bittrex.
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The hack at the center of this dispute took place between 18 and 22 May, according to an accident response report published this May.
The BTG team states that the hack was a combination of a 51% attack and a double spend attack.
BTG experts said hackers rented servers through the NiceHash cryptocurrency market to overwhelm the Bitcoin Gold network and take control of more than half of the computational variance in the BTG network.
This is what cryptocurrency experts call a "51% attack", a dangerous scenario that allows attackers to change transaction details on the entire Bitcoin Gold network.
The BTG team states that during the 3.5 days the attackers overpowered the Bitcoin Gold network, the hackers deposited large amounts of Bitcoin Gold funds on cryptocurrency trading platforms.
Seconds after these deposits, hackers convert funds to another cryptocu
Once the funds were converted and stolen, hackers used their 51% control over the BTG network to reverse the initial deposit of BTG, invalidating the transaction and returning their original Bitcoin Gold funds to their personal portfolios. This second stage is known as a double expense attack.
Hackers repeated this operation several times between 18 and 22 May. Money has never been stolen from end user accounts but only from trading platforms.
At the time, BTG maintainers have repeatedly warned cryptocurrency trading platforms to increase transaction confirmation thresholds, a solution that would have made it more expensive for attackers to mount a 51% attack.
BTG maintainers have also warned the trading platforms on the address of the attacker's wallet, telling them to reject all incoming BTG deposits, and thus prevent the most devastating double-expense attack even if the 51% attack was successful.
In May, cryptocurrency experts said that hackers successfully used this 51% double attack and double spending to steal over 388,000 BTG Coins (worth more than $ 18 million at the time) from several grants of cryptocurrency, but did not disclose which platforms suffered losses during the attacks.
Most platforms either stopped attacks on time or swallowed up losses after failing to pay attention to warnings from the BTG team.
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But according to a weekend statement from the BTG team, the only platform that did not follow normal practices was Bittrex, who, in an unprecedented move, sought to convince the BTG the maintainers pay for the losses of hackers.
Something like that never happened before, and the BTG team did not want to hear it. Bittrex tried to meet BTG maintainers in the middle, but the BTG team also refused to pay a repair fee of around 6,000 BTG (~ $ 126,000).
Following the failure of an agreement, Bittrex revoked the Bitcoin Gold trading options on Saturday, September 1, telling BTG maintainers, they reached their final decision after the BTG team took no responsibility dell & # 39; hack.
The team behind Bitcoin Gold said the delisting has no impact on BTG trading, as Bittrex was never a top exchange for BTG operations.
Bitcoin Gold is ranked as the 29th most popular cryptocurrency on the CoinMarketCap cryptocurrency ranking site. Bittrex is ranked as the 23rd most popular trading platform on the same site.