Author: Bill Beatty

Meet the players in the BCH Market Manipulation Lawsuit

On Thursday, a lawsuit was filed in Florida’s Southern District against a group of cryptocurrency heavyweights alleging intentional fraud and market manipulation surrounding the recent Bitcoin Cash BCH update.

The civil suit filed by United American Corp. against multiple Bitmain related companies, Bitcoin.com, Roger Ver, Jihan Wu, Kraken, Jesse Powell, Amaury Sechet, Shammah Chancellor and Jason Cox alleges the group was involved in a scheme to manipulate the cryptocurrency market for Bitcoin Cash in an effort to highjack the Bitcoin Cash network, resulting in a global capital meltdown of more than $4 billion and causing countless people irreparable harm.

Breaking News: Lawsuit links Bitmain, Ver camp to ‘premeditated takeover’ of Bitcoin Cash network

Some of the names are well known to the Bitcoin community while others have been background players. Let’s have a look at the who’s who in this landmark cryptocurrency lawsuit.

Bitmain Inc. – More commonly known as Bitcoin US, Bitcoin Inc. is an American corporation wholly owned by Bitmain Technologies Holding Company. With Bitmain Inc. being a USA corporation, it will be difficult for the larger company to claim the suit doesn’t belong in American courts. 

Bitmain Technologies LTD. – Founded by Micree Zhan and Jihan Wu in 2013, Bitmain rose to prominence and then dominance in the bitcoin mining space with their ASIC cryptocurrency miners.

Bitmain Technologies Holding Company – The company filed for an initial public offering this past September 26 with the Hong Kong regulatory agency. That IPO has been in doubt of late with disastrous financials leaking and their reputation taking a beating during the hash war that triggered this lawsuit. 

Saint Bitts LLC d/b/a Bitcoin.com – Bitcoin.com is one of the more controversial websites in the cryptocurrency industry. Bitcoin.com is probably responsible for onboarding more people to Bitcoin that any other site. They offer news, tools and even online gambling but after the 2017 BTC-BCH split, and their propensity for hyping up poorly planned and executed ICOs they’ve become more divisive in the past couple years.

Read the Court Filings from the BCH Manipulation lawsuit

Roger Ver – Known as the Bitcoin Jesus due to his early wiliness to invest and travel the world spreading the gospel of Bitcoin. He’s fallen from Grace particularly after the 2017 BTC-BCH fork. Ver would debate anyone and everyone, claiming BCH was the true Bitcoin and any chain that deviates from the Satoshi Whitepaper couldn’t claim to be Bitcoin. His decision to support the ABC instance during the hash war and his penchant for putting his promotional support behind pump and dump ICOs has left many of his disciples abandoning the faith. Ver denounced his American citizenship in 2014 and was once denied a USA visa as US immigration was unsure if he’d leave the country and he’d remain as an illegal immigrant. This case should offer US immigration sufficient grounds for a visitor’s visa.

Jihan Wu – He’s the public face of the Bitmain empire. A regular on the conference circuit and recipient of the lion’s share of both the praise and the scorn from the cryptocurrency community. He was the power broker during the 2017 battle for larger blocks in BTC, his mining pools held enough power to determine whether Blockstream’s Segregated Witness and the plan to leave BTC at 1MB blocks or if the big block battle would continue. Wu negotiated a split which created Bitcoin Cash BCH and took the big block supporters with him. He also played a major role in the Hash War, funding the controversial ABC instance and then arranging the mercenary miners to move over to the BCH chain. Like Ver, the split has left his reputation in tatters. 

Payward Ventures Inc. d/b/a KrakenKraken is a cryptocurrency exchange site that was funded by Roger Ver and operated by his high school friend Jesse Powell. The site was one of the more popular exchanges operating in the US, Canada, Japan and the EU. For a couple of years, it stood as the largest exchange in the industry before giving way to companies like Coinbase and Binance. This lawsuit isn’t the first time Kraken has faced scrutiny, earlier this year they were under investigation by the New York Attorney General’s (NYAG) office who was on a fact-finding mission to see what if any measures exchanges took to protect their customers from market manipulations.

Jesse Powell – Powell, in addition to being Ver’s high school friend, is the CEO of Kraken. When the NYAG was conducting their investigation, Powell made a point not to cooperate and declared the investigation was hostile and bad for business. Unlike Ver who renounced his USA citizenship and left the country, Powell still resides in the US and could be forced to do the heavy lifting if Ver doesn’t return to answer the suit.

Amaury Sechet – Sechet is the lead developer for Bitcoin ABC and the self-proclaimed benevolent dictator of Bitcoin Cash BCH. The anarchist is a French national who is responsible for the contentious changes to the node software that ultimately caused the rift and eventual fork in the BCH chain.

Shammah Chancellor – Is a developer with Bitcoin ABC who works with Sechet.

Jason Cox – Along with Chancellor, works with Bitcoin ABC as a developer.

United American Corp. – The Florida-based company focuses on telecommunications applications, including BlockchainDomes, which are eco-friendly crypto mining facilities that use the generated heat to power green houses and grow food. In 2017, UAC moved heavily into the development and implementation of blockchain-related technologies. The company believes that the high-jacking of the Bitcoin Cash network could imperil its investments, as the changes brought by Bitmain and Ver’s group have altered the fundamental economics of the business.

The post Meet the players in the BCH Market Manipulation Lawsuit appeared first on CoinGeek.

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More DDoS attacks on Bitcoin (BCH-SV) friendly websites

If the only defence of your policies is to silence your critics, the chances of your ideas being the wrong ones are pretty high.

Over the past week, CoinGeek.com has suffered through several distributed denial of service attacks (DDoS). The first one was a big one, and we had to upgrade our defences. Thank-you to the beautiful people at Cloud Flare, subsequent attacks have caused minimal disruptions.

On Thursday BitcoinSV.io was hit with a massive DDoS attack.

The attack comes soon after the website published a listing of wallets, block explorers and other business and services that have chosen to add their support for Bitcoin SV after the ABC decision to move away from Bitcoin BCH.

The timing of these attacks could be coincidental, but the timing of the attacks is somewhat suspect. We won’t cast aspersions towards any of the bastions of free speech in the bitcoin community, but it does highlight a problem with society in recent years.

I was always led to believe that you let your opponent talk and you listen. You present your well-reasoned arguments and allow the better ideas to succeed for the betterment of the society.

With their most recent changes, 5th since the upgrade, ABC’s critics continue to grow. People are critical on social media, and now the mainstream tech press is starting to join the chorus of critics admonishing the Bitmain and Bitcoin.com funded group of developers.

TNW, formerly known as The Next Web, has written a scathing article titled “Bitcoin Cash ABC update exposes potentially catastrophic vulnerability” where it highlights the vulnerabilities opened up by ABC’s slapdashed approach to blockchain development.

For many on Twitter, the checkpoints are a bridge too far as it removes the security provided by the proof of work principal as laid out in the original whitepaper, with many saying and we agree, that ABC is no longer Bitcoin.

The move removes the trustless decentralized system, and it allows a “trusted central authority” to publish these checkpoints. Ask yourself, whom do you trust? Roger Ver, Jihan Wu or Amaury Sechet, I’m sure they’re all nice people to share a meal with but do you trust them with all your money?

DDoS attacks, several updates untested updates and all manner of collusion with wallets and exchanges seem like the actions of desperate men.

There are rumours that the Chinese government is behind this or there is a secretive cabal trying to control the chain for nefarious reasons. I believe it’s much simpler than a crazy conspiracy; this is about plain old-fashioned greed.

The group is desperate to make Wormhole token a thing. Back in August, there was an offer, 1000 wormhole tokens for every BCH burned. This 1000-1 ratio isn’t for everyone, the general public would be and will be offered 10-1 rate when wormhole becomes a widely accepted token.

My sources tell me that Jihan, Roger and a few trusted allies either orchestrated or took advantage of this 1000-1 proposal.

Despite crowing from Ver, the hash war isn’t over and as the chorus of dissent against ABC’s move away from Bitcoin grows louder, and the support for SV swells, we expect more attempts to silence the critics but you can’t DDoS the planet.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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BCH Professional Stress Test scheduled for November 17

After the success of the first Bitcoin BCH stress test on the first of September, the group behind that test have decided to ramp up their efforts to showcase the robustness and reliability of the of the BCH Network.

The group plans a more extensive, more professional stress test on November 17, two days after the scheduled protocol upgrade.

Rather than I tell you about the upcoming stress test, Brenden Lee of https://stresstestbitcoin.cash has put some words on the page to give some insight into their group, their processes and what everyone can expect come November 17.

The Professional Stress Test

“Our team came together to bring the first stress test to life, and while the test itself was something of a success, the 2.2 million transactions were a far cry from the target we had set for ourselves of 5 million transactions.

The reasons were wide-ranging and included a lack of automated systems for re-starting tests that failed, issues with the way some nodes were managing transaction buffers, and a lack of people to run the testing and manage the system.

After the test, a small group of us came together to look at forming a professional testing group, and the idea of the professional stress test was born.

Dale Dickins is an early Bitcoin activist and the maker of a documentary called “The Bitcoin Doco.” She works tirelessly to build networks of people who use Bitcoin, creating small social worlds to achieve great things. She has recently been part of the group who brought the Bitcoin Cash Jeepney to the streets of Manila and is working on forming long-term business relationships in Bitcoin.

Esthon Medeiros is the wizard behind the curtain, building and managing the test machinery, currently being referred to as the ‘Satoshi Shotgun,’ which has significantly evolved since the first test. We now can create many geographically dispersed nodes using multiple Bitcoin clients (we currently support Bitcoin Unlimited, Bitcoin SV and Bitcoin ABC) and can easily regather funds and send large numbers of transactions for a sustained period. The machine’s power will be on display during the upcoming pre-test which we hope will achieve at least one 32MB block.

Brendan Lee is the author of BUIP086 which extends the functionality of Bitcoin QR codes and developed and now sells the patented Safewords system through his company Coin storage Guru, while more recently has been fortunate enough to be part of the team at Tokenized, recently awarded the Coingeek Token prize. His role has been planning the strategy for ensuring money and resources are available on the day as well as acting as a technical interface for customers.

John Goldberg is the creator of the innovative Pixel Wallet (an Android BCH wallet that uses pictures to send cash) and was a significant contributor to the original stress test and one of the core members of the BCH Jeepney team, who were the first to implement Handcash’s POP Retail system in a real-world application.

We also have Spark who created some fantastic data visualizations for the first stress test and is working on ways to capture the essence of what happens during this stress test.

And finally, Yobits who was the originator of the Stress Test idea and as webpage master has done a great job putting together a beautiful website.

As for the stress test itself, we want it known that we are not here to break things. We, as a team, are aligned with Satoshi Vision, however, have decided to run the test in such a way that a network supporting current rules, or the ABC ruleset would face minimal disruption.

The test will challenge mempools, and users may have to pay slightly higher fees than usual (test transactions will carry a fee of just 1sat/byte, so transactions with two satoshis/byte should usually be mined in the next block regardless of the state of the mempool) for reliable transaction confirmations. However, we believe that if a network wants to call itself Bitcoin, it must be able to show the world that it is anti-fragile, and this includes withstanding attacks that I would consider relatively cheap (we will spend about 70BCH over the course of the day) for a well-funded state based actor to execute.

We are very strong proponents of scaling Bitcoin and believe that a successful demonstration of a public network processing over a million transactions per hour will send a huge signal to businesses and the broader public that Bitcoin Cash is serious about adoption, and serious about becoming a global cash network. We hope that we can generate enough hype through this test that companies looking at implementing cryptocurrency-based payments will put Bitcoin Cash first, as it forges a path towards being the best money possible.

Following the stress test, the team is working on a business plan to create value-added services around generating large volumes of transactions on the blockchain for things such as advertising, corporate testing, stress testing and more. The team is very much looking forward to announcing these efforts soon. – Brendan Lee

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Hong Kong Bitcoin BCH Miners Summit recap

On November 2nd, CoinGeek.com sponsored a Bitcoin BCH Miners Summit at The Grand Harbour in Hong Kong. The event was a chance for Bitcoin BCH miners to network and learn why Bitcoin SV is the BCH implementation they should choose for the upcoming upgrade on November 15.

Tony Tong, the co-chairman of the Hong Kong Blockchain Association, was the host for the proceedings and opened up with a warm welcome to the miners before introducing the first speaker for the day, nChain Chief Scientist Dr. Craig S. Wright.

Dr. Wright spent his time painting a picture of the possibilities and future opportunities for miners if they can use their collective power wisely.

He spoke of the importance of not leaving the future to the developers who want to make major changes every six months and increasing its complexity, stressing, “We are not throwing out bitcoin because Bitcoin works, there is no need to make it harder as simplicity is critical.”

Dr. Wright asked the audience to look to the future, a future in which mining companies held the same respect the banks used to before the financial collapse.

Miners should focus on creating generational businesses that can be passed down to their children rather than focusing on the get-rich-quick empty promises of ICOs which are like the IPO mills of the late 1990s.

The entirety of Dr. Wright’s speech will be available on CoinGeek.com in a few days.

nChain’s Jimmy Nguyen was next to the stage to speak on the four pillars on which Bitcoin SV sits, saying, “Bitcoin SV is created with four pillars in mind. It is a BCH protocol implementation that is stable, scalable, secure, and enables safe instant transactions. Those pillars advance the Satoshi Vision for Bitcoin BCH to reach global adoption as the new money and the dominant global public blockchain.”

Nguyen talked about his belief that it’s time for Bitcoin to grow up and to lock in the protocols, just as the Internet protocol was locked in, thus allowing development of the internet into what we have today. The entirety of Jimmy Nguyen’s speech will be available on CoinGeek.com in a few days.

Steve Shadders, nChain’s lead developer, joined Nguyen on stage to spend time explaining the more thorough technical benefits for miners who use the Bitcoin SV implementation and the importance of removing the limits.

Shadders talked about Bitcoin SV allowing transactions beyond simple payments, transactions requiring blocks more massive than anything in use today.

Nguyen reminded the attendees that with each miner’s reward halving, miners would need to take on more transactions and earn more transaction fees to make up for the reduced reward.

The entirety of Steve Shadders’s speech will be available on CoinGeek.com in a few days.

After the break, Joe Chin of CoinGeek Mining gave a talk on the benefits of the SVPool and encouraged the mining community to give it a test run.

In his first official public appearance since winning the CoinGeek.com Tokenization contest, James Belding gave us a sneak peek at his award-winning on-chain BCH token solution which garnered a large ovation from the audience.

Speaking with James after, he told me, “It was exciting for me to finally be able to share what our team has been working hard on over the last few months.

I believe our token solution combined with a stable Bitcoin protocol, as Satoshi always envisioned, will help make BCH the global standard for distributed ledgers. I enjoyed meeting many of the thoughtful and passionate members of the Chinese blockchain community, and I look forward to my next time in Hong Kong.”

You will be able to meet James Belding and learn more about his Token solution at CoinGeek Week in London on November 27-30. To book your tickets, please visit here.

The final speaker of the day was Mr. Yuan Bo of CoinGeek Mining. Mr. Bo gave the room a sneak peek at the early test results for the upcoming Squire Miners. The tests indicate these will be the most cost-effective ASIC miners on the market when they are released, and the numbers created audible murmurs and a few loud cheers from the audience.

If you want to learn more about the Squire Miners, please be sure to attend CoinGeek Week’s Miners Day on November 27 in London.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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