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Bitcoin SV Network Attacked Leading to Exchanges Freezing Withdrawals

Bitcoin SV Network Attacked Leading to Exchanges Freezing Withdrawals

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  • The Bitcoin Association has said that it will initiate legal action against the attackers for the double-spend attacks.
  • Market analysts have criticized the Bitcoin SV software node providers for bad network design that falls to such re-org attacks.

Earlier this week in a recent illegal block reorganization, the Bitcoin Satoshi Vision (BSV) network was under attack. The Bitcoin SV network remains vulnerable to double spends as the network remains unstable.

On Thursday, July 8, the Switzerland-based Bitcoin Association announced the news of the double-spending attack. The association identified one of the wallet addresses that has a history of facing ransomware attacks and illegal activity. The official announcement notes:

The Association has been made aware of an illegal attack against the Bitcoin SV network.  A malicious actor has recently been carrying out block re-organization attacks on the Bitcoin SV network, which appear to be intentional acts in an effort to mask the illegal double-spending of coins.

The Association will continue to maintain a zero-tolerance stance for illegal activity on the Bitcoin SV network and will respond to all malicious actors and activities accordingly.

The Bitcoin Association said that it will pursue legal action against the attackers. It noted that the Association has identified the malicious activity and prepared all legal documents in regard.

BSV Suspended on Several Crypto Exchanges

In the meanwhile, the Bitcoin Association has been in talks with several popular exchanges offering support to BSV coins in regards to the ongoing illegal activity. The Association has also asked exchanges to freeze deposits from the addresses associated with the illegal activity. Crypto exchange Huobi was among the first ones to initiate action on this matter.

The Bitcoin Association and the exchanges have been criticized by investors for initiating this action all of a sudden. Scott Barr, the co-founder of tokenized.com said:

Huobi have disabled BSV deposits and withdrawals. No advance warning was given of this change. They are saying you can use ERC20 and Heco. That’s useless to me. So if you want BSV to buy and use, this is not the exchange for you. Looks like I need a new exchange.

Popular crypto analyst Willy Woo also slammed the Bitcoin SV network as a “game-theoretic network”. Besides, he also called its design “brain dead” and blamed the creators for this faulty design.

Defending its position, the Blockchain Association noted:

Blockchains cannot themselves prevent bad actors.  But by working together with exchanges, miners, transaction processors and other industry participants, collectively we can facilitate a safe and trusted environment for users of the Bitcoin SV network.

Preventing Block Re-Orgs

The Dash blockchain has further advised the Bitcoin SV organization to implement ChianLocks to prevent future damages. Dash itself has also pioneered the ChainLocks implementation which itself makes reorgs impossible.



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