- Roger Ver, Kraken Exchange, and Bitmain have been accused of colluding to take over the Bitcoin Cash network
- This allegedly took place after the November 2018 software update
A new lawsuit has been brought forward against Bitmain, Bitcoin.com, Roger Ver, the Kraken Bitcoin Exchange and a number of others.
The lawsuit claims that the parties in question colluded to take control of the global Bitcoin Cash (BCH) network and exploited it for personal gain, leading to the collapse of the global Bitcoin Cash market.
The suit was bright forward by Miami-based United American Corp (“UnitedCorp”) in the US District Court for the Southern District of Florida.
“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,” stated Benoit Laliberte, President of UnitedCorp, “In order to maintain confidence in cryptocurrencies such as Bitcoin Cash, no person or entity can be allowed to control them.”
Details on the suit
The suit alleges that the parties in question engaged in questionable business practices that have them an unmerited advantage.
Their actions, the suit claims were intend to benefit them exclusively and led to the decline in the global Bitcoin Cash market to the detriment of UnitedCorp and other stakeholders.
These actions supposedly took place after the software update of November 15, 2018. The accused parties allegedly colluded to take control and centralize the global Bitcoin Cash network.
This, they claim, is against the accepted practices of Bitcoin and Bitcoin Cash.
UnitedCorp is seeking compensation as well as an injunction against the parties to prevent them from engaging in such practices in the future.
The underlying principle
One of the core principles of bitcoin and Bitcoin Cash is that no single individual or entity should have lopsided control over the network.
This is ensured through the multiple nodes that confirm transactions that are carried out on the network. As a result of these nodes being in place, tampering with the system is very difficult.
However, should any entity control more than 51 percent of the network, the reversal of transitions becomes possible, which is what is being alleged in this case.
The lawsuit states that the software update was used as a means to implement ‘rented hashing’ which allowed the accused parties to unfairly take advantage of the network.