Bitcoin Gold users lost more than $2.5M

Bitcoin Gold users accuse BTG team in fraud; let's try to figure out, what happened
22 November 2017   8812

On the night of November 13-14, more than 3200 user wallets were devastated by hackers as a result of the vulnerability of the only available at that time BTG wallet called Mybtgwallet. According to preliminary calculations, the losses amounted to 300 BTC and 300 BTG, which exceeds $ 2.5 million, one of the representatives of the affected users Levin Vadim told  russian news website ForkLog.

A group of injured users (120+ people) was organized in Slack Channel by an activist under the name Concorde. They are convinced that even if the Bitcoin Gold team is not directly involved in the fraud, it has provided the attackers with everything they need to steal coins, which makes it equally guilty.

It is known that the Bitcoin Gold team has attracted a third party to develop an appropriate ecosystem in the form of an electronic wallet to generate a BTG address. This third person was the developer John Dass, who in the official slough of the Bitcoin Gold project received the status of "DEVELOPER" and openly urged all users to choose his wallet. It is worth noting that the team BTG confirmed cooperation with John Dass, and Mybtgwallet called a safe and non-fake wallet.

Bitcoin Gold Slack
Bitcoin Gold Slack

When the BTG network started, Mybtgwallet was the only way to generate the BTG address for the miners, except downloading the full node to your server. The weight of the full node was 147 GB, and downloading it was very problematic for many, respectively, they generated the address through the wallet, where it was necessary to enter the seef-phrase from the BTC-purse.

My BTG wallet
My BTG wallet 

Also, we can the reply of official Bitcoin Gold twitter account.

Bitcoin Gold Twitter
Bitcoin Gold Twitter

One of the affected users assume that the attackers had access to the seed-phrases and took advantage of this to steal the funds.

On Sunday, November 12, representatives of Bitcoin Gold announced the launch of a wallet in their channels.

Bitcoin Gold Twitter reply
Bitcoin Gold Twitter reply

users claim that approximately a month before the start of the main network Bitcoin Gold site was hacked and the attackers replaced the official Twitter address with a fake one. There were no statements from the developers on this matter. Maybe they were afraid of negative public opinion on the threshold of the launch and concealed this fact from the community.

According to the source, a group of eight people, under the auspices of the business angel, who heads the victims, is in talks with the developers. This group has set the following conditions for the Bitcoin Gold team and Jack Liao: "full refund at the rate of November 14-15, or lawsuits against Liao and each member of the team for aiding offense".

To fulfill the conditions, the developers were given only 24 hours. According to representatives of the initiative group for the return of funds, the BTG team informed them that at the moment it is cooperating with the FBI in order to return money.

Bitcoin Gold Slack
Bitcoin Gold Slack

On Tuesday, November 21, it has became known that a group of active users who had suffered as a result of fraudulent actions decided to stand on the warpath and sue the Bitcoin Gold team for assisting intruders who had disappeared from $ 2.5 million. Moreover, as they say, the representatives of the developers threatened them with a complete refusal of cooperation in case of disclosure of the situation in the media

Hype.codes team does not support or condemn any of the conflict sides. We are trying to provide as objective information as possible.

664k BTG Split & Moved For a First Time

This event can have huge impact on the Bitcoin Gold price
22 February 2018   86

On February 20, an unknown user released 664,000 BTG coins that had been lying motionless since the launch of the Bitcoin Gold network last fall. This could lead to the largest one-stage increase in the BTG market for the whole short history of the existence of the "new digital gold". This is reported by CCN.

Bitcoin Gold crypto currency was formed as a result of the harsh press, held on October 24 last year. The network wasn't launched immediately, but several weeks after the completion of the premiere.

The holders of bitcoin have the opportunity to obtain an equivalent number of BTG coins. Many hastened to take the necessary action to obtain new coins in the first weeks. However, in all likelihood, not all holders of large amounts in the crypto currency have done this.

Below is a graph that illustrates the dynamics of obtaining BTG coins by bitcoin holders (forks. network):

Amount of coins moved on each side
Amount of coins moved on each side

One of the engineers of the Blockchain, who created the forks.network, connects this transaction to the bitcoin-service Xapo. In his opinion, the action was committed on the initiative of one of the institutional clients of the popular service.

It remains a mystery why this unknown cryptoinvestor did not extract the BTG coins before and did not sell them when the Bitcoin Gold market rate reached a mark above $ 400. Currently, the weighted average rate of BTG is around $ 125.

Bitcoin Gold crypto currency can not now be called a highly liquid altcoyin. According to the volume of market capitalization, the coin is on the 20th place of the Coinmarketcap rating, and the daily trading volume of BTG hardly exceeds $ 40 million.

The current value of the above 664,000 coins is $ 82.7 million. Thus, the sudden release of Bitcoin Gold coins to the market is unlikely to have a positive effect on the course of this relatively young crypto currency.