18 million dollars’ worth of Bitcoin Gold theft

18 million dollars’ worth of Bitcoin Gold theft
May 25, 2018 by Rico Wise

Recently, BTG was hacked for an estimated amount in the ballpark of 18 million dollars. The investigation is ongoing, and so far it is known that the hack was on its way a week prior to the actual incident.

The cornerstone principle for Bitcoin was to eradicate the issue of double spending. It was the biggest roadblock on the path to a suitable monetary form of cryptocurrency. Satoshi Nakamoto managed to fix it via decentralization, establishing the blockchain technology as we know it today.

Bitcoin Gold suffered an attack commonly known as 51% attack. It is done by monopolizing the calculating powers of the network. This allows to interfere in the confirmations of any transaction performed on the network. By meddling with the block completion process, hackers can reverse the transactions, redirect mining rewards and so on. After that hackers can set off the double spending hack, which is known as the counterfeiting when it comes to fiat currencies. It is quite obvious that vulnerability to such an attack can cause the user to stop trusting the cryptocurrency anymore.

The Bitcoin Gold group found an evidence of a certain wallet responsible for the unlawful transactions and found an attackers wallet that contained more than 388,201.92404001 BTG. It is worth more than 18 million dollars as of the time of writing.

BTG has been surrounded by doubts and has incited even more controversy over the last few months. Nevertheless, Bitcoin Gold is not the only currency to suffer the so-called 51% attack: recently the XVF coin has also been attacked. The report indicates that on 22 May Suprnova mining pool suffered the 51% attack once more, with subsequent rejection of all blocks.