Bitcoin Gold delisted from major cryptocurrency exchange over compensation dispute

Bittrex drops Bitcoin Gold in the aftermath of a major hack earlier this year – and Bitcoin Gold is having its say about it…

A dispute between the cryptocurrency exchange Bittrex, and the team behind the currency Bitcoin Gold, has come to a head over the past 24 hours. It’s resulted – at least for the time being – in Bitcoin Gold being de-listed from the Bittrex exchange, and an inevitable war of words is now breaking out.

Bitcoin Gold, a hard fork from Bitcoin, originally came into being at the end of last year. Its key selling point was that it could be mined with a graphics card, but earlier this year, its blockchain was hacked, leading ultimately to around $18m of the currency being compromised. The funds never left the accounts of end users, but left exchanges out of pocket.

Bittrex, for one, has been seeking compensation for the incident, and had asked the Bitcoin Gold team to pay 12,372 BTG in recompense, in order to remain listed with the exchange. When it didn’t pay up, the currency was duly delisted, effective the start of this month.

In a statement posted at Bitcoin Gold’s website, it first of all argued that Bittrex wasn’t a major exchange for it. But also, it defended itself, arguing that “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”.

It added too that “Bittrex informed us that they make this decision because the BTG team would not ‘take responsibility for our chain’, and that taking responsibility meant paying Bittrex 12,372 BTG to cover the loss they incurred. They later informed us they would cover part of the loss from their own BTG reserves and requested we pay the remaining ~6000 BTG, and that if we did not, we would be delisted”.

Bitcoin Gold, for its part, argued that’s a sizeable amount of its available funds, and that it would not pay the demand “for the purpose of covering a private company’s losses from their own security failures”.

Bittrex hasn’t made any formal announcement on the delisting at the time of writing, and instead is pressing ahead with listing other coins over the coming days.

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