Bitcoin Gold (BTG) team, the body that develops the BTG coin, has decided not to pay reparations to Bittrex cryptocurrency exchange for the May hacking, BTG team said in a statement on Saturday. The decision will result in a delisting of BTG from the US-based trading platform next week.
In May, Bitcoin Gold experienced the so-called 51% or double-spend attacks with $18 million worth of BTG stolen from several exchanges. Bittrex was one of the main victims of the hack. First, the US-based trading platform demanded BTG 12,372 (around $265,000) as compensation, but later lowered the sum to around BTG 6,000, according to the BTG team. The body refused to pay because it is a non-profit organization (Endowment), and offered a loan to Bittrex instead, which was, however, rejected by the exchange.
“In light of the potential impact on the BTG Community, our Board carefully considered their demand but concluded we are not empowered to make a disbursement from the Endowment for the purpose of covering a private company’s losses from their own security failures,” the BTG team explained in a statement.
Currently, Bittrex supports Bitcoin Gold trading in Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) pairs. These pairs accounted for around $290,000 (3.27% market share) of the BTG $8.7 million trading for the last day as at the time of publishing. The largest Bitcoin Gold markets were HitBTC with $2.1 million (nearly 24% share) and Bithumb with $1.8 million (20.9% share).
BTG was created as a hard fork from Bitcoin in October 2017 with the goal to allow ordinary miners to ‘create’ coins by their own computers and to stop the process of mining monopolization by several big players that is typical for BTC. In June, BTG implemented a new proof-of-work (PoW) algorithm with the aim to stop the double-spend attack and to prevent ASIC miners to gain 51% control of the mining pool.