Month: May 2018

BTG has been through 51% Attack recently

BTG has been through 51% Attack recently

Few days ago,a malicious miner has successfully carried out a double spending attack on the Bitcoin gold network, leaving BTG under attack.

The miner gained at least 51% of hash power of BTG network in order to carry out the attack, which allowed him to temporarily control the BTG blockchain. Even on a small network like BTG, it would be very expensive to obtain such a large hash power, but he could profit from the double spending Attack.

After gaining control of the network, attackers began to load BTGs into exchanges and also tried to send them to wallets under their control. Typically, blockchain addresses this problem by adding the first transaction only to the system, but now attackers are able to undo the transaction because they have majority control power of the network.

As a result, they are able to recharge the exchange and then withdraw the money quickly,so that they can send the original BTG to another wallet.

Since May 16, the Bitcoin gold address involved in the attack has received more than 388,200 BTG (most of the deals are sending by themself). Assuming all of these transactions are related to double spending attack, attackers may have stolen up to $18.6 million worth of funds from the exchange.