Bitcoin News — Hacks
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Bittrex will delist Bitcoin Gold by September 14, following an $18 million double-spending hack of BTG in May.
Founded in 2017, the hard fork cryptocurrency Bitcoin Gold has suffered a “double-spending” hacking attack that reportedly allowed the unknown hijackers to take control of more than 51 percent of the BTG hashrate. The attack, which reportedly started on May 18, 2018, has managed to amass more than $18 million in Bitcoin Gold from various exchanges, including Bittrex.
Following the hack, the Bitcoin Gold team explained that the attacker was deploying the combination of a 51 percent and double-spend attack in order to defraud crypto exchanges. They noted that the hacker was targeting exchanges since they “accept large deposits automatically, allow the user to trade into a different coin quickly, and then withdraw automatically.”
Specifically, the attacker was making large BTG deposits on exchanges, at the same time sending the same funds to his own crypto wallet. By the time the exchanges realized that the transaction was invalid, the hacker had already withdrawn funds from the exchange and doubled his original funds.
According to the recent report, Bittrex has not specified the amounts of losses the cryptocurrency exchange has suffered as a result of the BTG attack. However, the major crypto exchange has reportedly requested more than 12,000 BTG (worth around $255,000) as a compensation from Bitcoin Gold.
While Bittrex has blamed BTG’s Proof-of-Work (PoW) consensus as a factor that led to the double-spending attack, Bitcoin Gold claimed that their team “is not responsible for security policy within private entities like Bittrex,” adding that the exchanges “must manage the related risks and are ultimately responsible for their own security. With that, BTG developers acknowledged the risks taken by their own blockchain, subsequently posting an upcoming hard fork upgrade plan.
The $18 million hack is not the first successful attack associated with the Bitcoin Gold cryptocurrency. In late 2017, a fake BTG wallet stole private keys worth $3.3 million in crypto.
As for Bittrex, the crypto exchange has recently become one of the entrants to the “Virtual Commodity Association Working Group” — the self-regulatory association for digital commodities like cryptocurrencies. The organization is planning to develop industry standards and to “be a precursor to the formation” of self-regulatory activity for cryptocurrencies.
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- Tags: Altcoin News, Bitcoin Gold, Bittrex, Cryptocurrency Exchange, Hackers, Hacks, Hard Fork
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An U.S. investor has filed a $224 million lawsuit against telecoms giant AT&T over alleged negligence that he claims caused him to lose $24 million in crypto.
An U.S. investor has filed a $224 million lawsuit against telecoms giant AT&T over alleged negligence that he claims caused him to lose $24 million in crypto, CNBC reports August 15.
Plaintiff Michael Terpin has reportedly filed a 69-page complaint with the U.S. District Court in Los Angeles against his erstwhile telecoms provider, alleging that $24 million in cryptocurrency was stolen via a "digital identity theft" of his cell phone account.
After the first hack, Terpin claims that “insider cooperati[on] with the hacker" enabled an imposter to acquire his cellphone number without being required to show valid identification or a password. That phone number later allegedly facilitated the hacker’s access to Terpin’s crypto holdings, CNBC reports.
"What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner," the complaint continues.
Terpin is said to be seeking $200 million in punitive damages and $24 million in compensation from AT&T.
The plaintiff is reportedly the co-founder of an angel group for Bitcoin (BTC) investors dubbed BitAngels in 2013 and of a digital currency fund, the BitAngels DApps Fund.
More commonly, crypto-related lawsuits have been filed against cryptocurrency exchanges and their alleged mishandling of security breaches. Since the unprecedented theft of over $500 million in NEM tokens from hacked Japanese exchange Coincheck this January, numerous class action lawsuits have been filed by investors suing the exchange over its decision to freeze withdrawals in the hack’s aftermath.