UnitedCorp Sues Bitmain, Kraken, Roger Ver & Others For Allegedly Highjacking BCH Network
A U.S company known as UnitedCorp has launched a lawsuit against several Bitcoin Cash actors for what the group sees as a conspiracy to hijack the Bitcoin Cash network to the detriment of others.
Bitmain, Jihan Wu, Roger Ver sued
United American Corporation (UniteCorp), based in Miami, Florida, has filed a lawsuit against bitcoin mining giant Bitmain, Jihan Wu, Roger Ver, Bitcoin.com, U.S based Kraken Bitcoin Exchange and other entities for what the lawsuit alleges is a well-planned plot to hijack the BCH network.
As per the suit, this scheme to seize control of the Bitcoin Cash network is for the personal gain of those mentioned and is the cause of the recent crypto meltdown that has seen BCH prices crash, to the detriment of UnitedCorp and other stakeholders within the Bitcoin Cash ecosystem.
The suit alleges that the Bitcoin Cash hard fork on November 15, 2018, did not happen or play out as expected due to the defendants’ unconscionable and deceptive practices, which violated accepted standards, protocols, and values related to consensus in Bitcoin Cash (BCH).
UnitedCorp alleges that Bitcoin.com rented extra hashing power and redirected Bitcoin (BTC) mining hardware to mine BCH to the benefit the Bitcoin ABC chain. The group views this as an unfair practice and an act of manipulation that, above all, undermined Bitcoin principals.
A press release on the lawsuit says that:
“… the use of computational hashing power that did not contribute to the network just prior and then was withdrawn shortly after the network upgrade was put in place for the sole purpose of maintaining an artificially longer chain over the existing rule sets and amounted to human manipulation.”
According to UnitedCorp, this amounted to a well-orchestrated scheme by the named individuals with the sole aim of centralizing the autonomous network.
Per the press release, the Florida-based firm also alleges that only a few days after the hard fork, (on November 20), the ABC team “planted a “poison pill” into the blockchain,” ostensibly via a “Deep Reorg Prevention.”
The statement continues:
“This intervention allows maintenance of control on future implementations and any related rule sets for future network upgrades.”
Centralization goes to trial
Decentralization is a key pillar to the principals of cryptocurrency, at least as envisioned in the bitcoin whitepaper. That is perhaps why the fourth point in the lawsuit documents is about the issue of centralization.
The filed documents note that:
“The market manipulation is centralizing what is intended to be a decentralized transactional system enabling the corruption of the democratic and neutral principles of the Bitcoin Cash network.”
In this regard, the suit puts it upon the court to decide whether or not users in the Bitcoin Cash ecosystem have the right to decentralization.
Perhaps more importantly, would be for the court to determine whether the previous actions as alleged of the defendants did violate such rights.
The main point of the UnitedCorp suit is that Bitcoin ABC’s actions amounted to nothing else but a plot to take control of Bitcoin Cash, and as such, the resultant split in the network protocol had nothing to do with consensus, especially on the premise that dominance was achieved via the use of rented hashing power.
Benoit Laliberte, President of UnitedCorp, is quoted as saying that:
“In order to maintain confidence in cryptocurrencies such as Bitcoin Cash, no person or entity can be allowed to control them.”
In their lawsuit launched at the US District Court for the Southern District of Florida, UnitedCorp, therefore, seeks for damages from the defendants and has asked the court to grant injunctive relief preventing these individuals from continuing with their activities against the network.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.