Suit Filed Against Bitmain, Jihan Wu, Roger Ver And Kraken For Alleged Manipulation During Bitcoin Cash Hardfork
The Bitcoin Cash (BCH) hash war reaches the courts as Florida-based United American Corp. filed a suit against some of the biggest names in the cryptocurrency market, alleging them of manipulating of the Bitcoin Cash network during and after the Nov. 15 hard fork.
According to a press release, Unitedcorp claims that the parties including Bitmain, Bitcoin.com, Roger Ver and the Kraken exchange were involved in “unfair methods of competition”, which were detrimental to UnitedCorp and other stakeholders. Benoit Laliberte, president of UnitedCorp, stated in the release:
“We are bringing this suit on behalf of UnitedCorp because we believe strongly in the value and integrity of democratic, distributed and decentralized blockchain networks which will become more important with time. In order to maintain confidence in cryptocurrencies such as Bitcoin Cash, no person or entity can be allowed to control them.”
The scheduled protocol upgrade of BCH network caused a disagreement, that led to two sets of supporters. One supporting Bitcoin ABC and the other Bitcoin SV. The so-called clash continued and resulting in a network split when the upgrade occurred on Nov15.
The success of each new coin was to be determined by the amount of hash power, the amount of computing power that was devoted by the miner on each network. However, UnitedCorp claims that during the split a number of entities took control of the network using “rented hashing” to favour the adoption of Bitcoin ABC.
The VP of Corporate Affairs at UnitedCorp, Lawry Trevor-Deutsch, told MarketWatch on a call:
“It is clear that’s what supposed to be a democratic process was not, it was hijacked by the ABC camp.”
It is alleged that the took control of more than 50% of the network during the upgrade. Ver is accused of collaborating with Jihan Wu of Bitmain to reallocate Bitmain servers from the Bitcoin Core network. The documents filed in court states:
“The above described actions were intentional and clearly planned in advance, with Bitmain organizing deployment (or actually redeployment) of up to 90,000 Bitmain Antminer S9 servers in early November,”
Since the Nov. 15 hard fork, Bitcoin Cash has fallen more than 73% to $116, an all-time low. Over the same period, bitcoin, the world’s largest cryptocurrency, has fallen around 35%.
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