More

    Double Spend Attack On Bitcoin Gold (BTG) Causes Chaos For Exchanges

    Crypto Exchanges Lose Remarkable Amounts Of Money After Double Spend Mining Attack on Bitcoin Gold

    Cryptocurrencies claim to operate more securely and privately than fiat currencies, but the truth is sometimes the security line is the way too thin and hackers just take advantage of it. Ever since virtual coins have emerged to the financial industry, many scandals have been linked to cryptocurrencies for great all robberies successfully deployed by hackers, a fact that even though has been decreasing lately still appears as a reality in the cryptosphere.

    In this matter, another attack was recently deployed in a successful way against the token Bitcoin Gold. It all appears that a miner managed to execute a double spend attack on the network of the Bitcoin Gold token favorably, achieving, as a result, the loss of millions of dollars to several exchanges that trade with the said coin. This was first noticed by Director of Communications Edward Iskra who cautioned users on May 18.

    The Strategy Used On The Attack

    The malicious miner managed to get control of the whole blockchain by acquiring more than half (51%) of the hash power of the network. Even though Bitcoin Gold is a tiny coin, currently ranked as the number 26 of the market, obtaining more than the half of the hash power of a network is an action that requires an immense amount of money. However, this money can be even be created at the time of deploying a double spend attack.

    Regarding this, Edward Iskra, the director of communications of Bitcoin Gold made a statement on the official Twitter account of the company saying that:

    “An unknown party accessing large amounts of hash power is using “51% attacks” to perform “double spend” attacks on Exchanges. We have been advising all exchanges to increase their confirmations requirement and to review large deposits.”

    The attacker started to deposit funds on different exchanges once it had acquired the majoritarian control of the network and parallel to that it transferred the very same coins previously moved to those exchanges to a wallet under their control. The blockchain actually resolves this double spend issue on regular conditions, but since the hacker had control over the network, it was possible to transact and reverse those operations later.

    It’s estimated that during the attack at least 18 million dollars were stolen from different exchanges. In fact, one of the accounts that allegedly is involved in the attack received on May 16th the amount of 388,200 BTG tokens. After May 18 the attacks stopped, but still, there’s a chance for the hacker to deploy another one if it manages to gain control one more time of the majority of the hash power of the network.

    bitcoin-gold-BTG-hack-attack

    With this assault, Bitcoin Gold is the third altcoin to suffer a robbery just in the last week, along with the cryptocurrencies Verge (XVG) and Monacoin, which recently were attacked as well.

    Another interest feud is happening within the Bitcoin Gold double spend attack with Dr. Craig Wright (Satoshi or not he was there from the beginning times).

    First we start off mild with the tweet…

    then there was this

    then, to keep the momentum going check out the bold statements and directness presented by one of the early-day Nakamoto tribesman.

    Interesting huh?

    Conclusion

    Cryptocurrencies definitely have come to stay and change somehow the financial industry,  but for them to accomplish its mission, it’s necessary the development of less fragile platforms that actively support the crypto statement of “security”.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,352FansLike
    2,771FollowersFollow
    4,133FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    44% Think Bitcoin's in a Bull Market & Alt-Season Will Occur in 2020: Kraken Survey

    In the currently unstable environment where industries are laying off, cryptocurrency exchange Kraken is on a hiring spree as it moves ahead to expand...

    Bitmain Releases Antminer E3 Firmware Update to Keep It Mining ETH Till October

    Mining hardware firm, Bitmain, set to extend the durability of its once “most powerful Ethash miner” from April to October 2020. The mining firm...

    Tether Prints over a Billion USDT in March, Rising Demand or Exchange Run?

    We are about to end March, a month that saw the price of bitcoin hitting $3,850 and ready to end the quarter with over...

    Bitcoin Beating Gold But What will Hold its Value Better in Five Years?

    The price of bitcoin is currently trading in the green by 2.34% as it trades around $6,450. Although down 11.89% YTD and about 34%...

    Lightning Labs New LSAT Protocol Promises To Do Away With Usernames And Passwords

    A statement from Lightning Labs CTO, Olaoluwa Osuntokun, revealed the specs of the Lightning Service Authentication Tokens (LSAT) which is expected to act as...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.