Bittrex Delists Bitcoin Gold For Refusing To Pay Hack Damages

bittrex sept4

Cryptocurrency exchange Bittrex has delisted Bitcoin Gold trading options after the maintainers of the distributed digital currency declined to cover the loss the exchange incurred from cyber attacks in May.

Bittrex had asked The Bitcoin Gold Organization to pay 12,372 BTG or $256,000 to remain listed, and the demand was later halved to around 6,000 BTG coins. The BTG team refused to pay even the halved reparations fee.

In a statement, the BTG team said its Board declined to cover a private company's losses from their own security failures.

In May, malicious parties used rented power from NiceHash to perform 51 percent attacks which they used to attack exchanges with double-spends. After the Network Upgrade hardfork on July 3, the risk is mitigated, and most exchanges have re-opened their wallets.

BTG team said during the 3.5 days of the issue, they took extensive measures to help Bittrex and other exchanges defend themselves.

Following the hack, Bittrex demanded BTG team to cover the loss they incurred. According to BTG team, the demanded amount was a significant fraction of the available funds from the Endowment which supports the Bitcoin Gold project. The team offered a BTG loan from the Endowment to help Bittrex address short-term liquidity problems, but the exchange declined and insisted on a payment.

The BTG team also said that the impact of Bittrex's action on BTG Ecosystem will not be substantial, as Bittrex has not been a top liquidity provider for BTG in recent months.

On CoinMarketCap, Bitcoin Gold is ranked as the 29th most popular cryptocurrency. BTG traded at $21.48 around 6 am ET Tuesday, up 0.74 percent over a 24-hour period.

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