The cryptocurrency exchange Bittrex reported that Bitcoin Gold will be removed from its trading list as of September 14. The controversial decision includes accusations of 51% attacks and loss of funds.
Under these arguments, Bittrex requested compensations of 6,000 BTG ($ 128,400) which the Bitcoin Gold Organization refused to pay, and the cryptocurrency will be removed from the platform, according to a statement issued on Saturday.
Although Bitcoin Gold regretted Bittrex’s decision, it made clear that it will not be a substantial loss since “Bittrex has not been a top liquidity provider for BTG in recent months.” The organization highlighted that its main exchanges are carried out on HitBTC, Bithumb, Binance, and Bitfinex.
Bittrex has not been a top liquidity provider for BTG in recent months …Bittrex announced this decision today based on a double-spend attack they suffered back on May 19th, despite all our efforts to assist them, and despite the fact that the danger is now over. As a reminder, in May malicious parties used rented power from NiceHash to perform 51% attacks which they used to attack exchanges with double-spends.
Bitcoin Gold Network
The constant attacks on the PoW networks and the cryptocurrencies have resulted in losses of more than $20 million, which is why Bittrex has made this decision. In May the Bitcoin Gold network was attacked and lost around $18 million, for which Bittrex temporarily suspended payments with BTG.
Initially, Bittrex demanded payments of 12,372 BTG ($ 263,800) to cover the losses. However, Bitcoin Gold said in the statement that Bittrex took part of the losses with its own BTG reserves and asked them in return to respond with 6,000 BTG. The crypto exchange added that if the developers don’t pay, “they would be removed from the list,” which will happen on September 14.
This may seem like a small amount to a profitable exchange, but it is a significant fraction of the available funds from the Endowment which supports the Bitcoin Gold project. (Our non-profit organization has no revenue streams, all BTG mining rewards go to miners, and nearly half the funds in the Endowment remain time-locked for future use, said the BTG representatives.
Bitcoin Gold offered a loan to solve liquidity problems in the short term but the proposal was rejected. The company was clear in saying that the attacks in May “were not the result of any failure in the blockchain or BTG code.”
In his defense, the Bitcoin Gold team said they were not responsible for the security policy of private entities such as Bitrex. And they added: “those who earn revenue running a private business must manage the related risks and are ultimately responsible for their own security.”
What happened with Bitcoin Gold and PoW attacks can represent a risk in networks with little processing, which leads to the theft of funds and conflicts between exchanges and developers. At the time of writing Bitcoin Gold $21.68.