Ana Sullivan

BitCoin Gold Hacked - Almost $18 Million in BTG Stolen from Exchanges

by Ana Sullivan May 25, 2018

News have broken out that the friendly fork of BitCoin, known as BitCoin Gold has been the victim of an attach which resulted in the theft of $17,5 milllion from cryptocurrency exchanges. After the news have broken out, the BitCoin gold token has begun to see various different types of negative reactions in users but the price of BTG has still remained to be stable, even though it soared with a lot for the past few hours:

 

The BitCoin Gold CryptoCurrency started out as a friendly fork of BitCoin and went live on October 24, 2017. The cryptocurrency has never seen any price that is higher than it’s all-time high of 478,04 USD when it first started and after it’s launch it was accused on forums that the fact that it’s a friendly fork may mean that it’s controlled by very few individuals. Although this may not be true, fact is the cryptocurrency was just hacked which resulted in over 388,000 BTG units to be stolen from exchanges.

 

How The BitCoin Gold Hack May Have Happened

 

The first sign of activity was unusual network actions on the network of BitCoin Gold which revealed that a scheme was in play. The scheme was in the strategy that is known as “double spending” type of attacks which were launched against the exchanges who support this crypto.


The BitCoin Gold team has also reported that the attack was focused more on exchanges rather than individual users being targeted. The first attack was initially recorded on the 16th of may and it appears as if the attack has now stopped it’s activity.

 

It is not known who is behind this attack as it is still to early to tell, but from the first investigations it seems as if the attack was conducted by someone with an extremely high hashing power, enough to perform “51 percent attacks” which results in a “double spending” hack to take place and steal money from exchanges. These double spending attacks are are basically on the base layer for transactions on the blockchain and it is a result of spending the same funds more than once. BitCoin users use confirmations when they receive payments on the blockchain, but exchanges have automatic authentication which could be bypassed if a powerful system is used. This happens by taking control by over the half of the network’s computing power, which allows you to modify and exclude transactions of you own coins from the blocks.


The wallet, participating in those attacks has received almost 400 thousand BTG tokens which is about $17.5 million at the moment of writing this. Most of those BTG have been spread via a lot of different anonymous addresses and 12 thousand units still remain in the hackers’ account.

 

One of the exchanges has previously reported attempts with such types of attacks but they have been unsuccessful and most of the exchanges report that they will begin to update their authentication as soon as possible to require more validation steps when big transactions take place. 

 

 

 

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