Cryptocurrency Bitcoin Gold (BTG) Breaks Ties with Bittrex Following Demand for Exorbitant Listing Fees

In the ever-evolving world of cryptocurrency, security remains a significant concern. A recent development involves Bitcoin Gold (BTG) and the Bittrex exchange, as they part ways due to an unresolved dispute over losses from a hacking incident.

On May 18th, Bittrex suffered a 51% proof-of-work attack, resulting in the theft of 12,239 BTG and other cryptocurrencies. The attack was a major setback for Bittrex, as it was one of the largest cryptocurrency heists in history.

Following the attack, BTG suggested that all exchanges raise their confirmation requirements to monitor unusual BTG deposits. An emergency Telegram channel was created to notify exchanges of suspicious transactions, but Bittrex refused to participate.

BTG shared the wallet address of the suspicious transaction on various social media platforms, hoping to gather support and help in recovering the stolen funds. However, Bittrex demanded BTG pay 12,372 BTG to cover the loss from the attack.

In response, BTG announced its decision to part ways with Bittrex due to their refusal to pay. The BTG team informed all major exchanges of the ongoing risk, especially regarding BTG. The BTG Board concluded they are not empowered to make a disbursement from the Endowment to cover Bittrex's losses.

BTG did not reveal any further plans or actions regarding the unpaid losses. The Endowment, intended for direct long-term expenses of running the BTG project, as per the founding Roadmap/Whitepaper, is locked for future use, as BTG is not a revenue-earning organization.

Despite Bittrex's action, the impact on the BTG ecosystem will not be substantial. Bittrex has not been a top liquidity provider for BTG in recent months. Due to the unresolved discord, Bittrex parted ways with listing BTG.

Bittrex later stated they would cover a part of the loss, with BTG covering the rest, and threatened delisting if not paid. However, BTG refused to cover for the loss, preferring to loan the exchange out of its endowment.

The cryptocurrency scam and hacking remain a major milestone in the growth of cryptocurrency. As the industry continues to evolve, it is essential for all parties involved to prioritise security measures to protect their assets and maintain the trust of their users.