Bitcoin Private confirmed the allegations made by CNN yesterday and made by CoinMetrics. Describing them as “mathematically correct,” the development team says that no one on their team knows where the extra-generated coins are invested.. Again, CoinMetrics noted that at least 300,000 of these coins have passed through exchanges.
This is due to the fact that the entire Bitcoin Private supply is due to the Bitcoin community (which users essentially request free coins on the BTCP blockchain) buy Bitcoin Private at low prices. It is emphasized that a significant part of it or the supply itself is in use.
Bitcoin Private investigated the matter thoroughly and determined that the culprit was related to a single developer.. Developer named airk42. This person has not contributed anything to Bitcoin Private since solving a problem and asking for a reward.. This is also the person who tweaks the imports so that on-demand trades of BTCP can be added as coinbase inflows at a certain block height.
The developer completes the issue, merges his code, and the reward is sent. A line of code is missing that allows fork mine to be used due to nodes that have not properly validated their fake fork blocks. […] The missing line of code is as follows: || tx.vout.size() > 1. We identified this shortcoming after the CoinMetrics report was published.
Bitcoin Private does not believe the developer in question used his own mistake.. Instead, they believe that an unidentified “bad actor” benefited the virus during the establishment of the BTCP blockchain.
During the public fork mining, a bad actor used this virus to create 2 million coins. This was not noticed by the contribution team until it was revealed by CoinMetrics.
Bitcoin Private Team Requests Deposits and Withdrawals to be Closed on Exchanges
According to the official statement regarding the situation, Bitcoin Private has been removing Bitcoin from all exchanges. Requested Private to stop deposits and withdrawals immediately.
The BTCP Contribution team requested that deposits and withdrawals be closed for BTCP trading on Exchanges.
Contribution team currently does not want to point fingers, but despite the use of protected addresses, the identities of those who made these transactions can be revealed if they are legally requested from exchanges. Either a lawsuit or a law enforcement agency has to file a valid subpoena against exchanges laundering counterfeit coins.
Although Bitcoin Private describes this as a situation that can happen to anyone, the rate is very high. The person in question is someone with knowledge of the Bitcoin Private codebase, someone sharp enough to notice the bug and use it. In this context, the virus’s coder, someone on the development team, or someone deeply buried in the small community with a strong blockchain development background.
“They contacted HitBTC”, but HitBTC is unlikely to release user information on simple request. Because exchanges have to comply with contracts that guarantee user privacy.. If exchanges could easily reveal the identity of this person, they would take legal action themselves.. Instead, identifying the hacker through legal channels would be the best option.
Bitcoin Private Will Eliminate All Protected Coins
To solve this problem, Bitcoin Private will destroy all coins held in protected addresses. announced that it will. Eliminating these fake coins will also eliminate a number of legitimate coins. It will basically require a hardfork that rewrites the blockchain, and trading transactions sent to exchanges can have a negative economic impact. stated that they believe the legitimate BTCP coin is located at protected addresses. Our team opts for an option to hard fork and remove all protected coins from existence. Although this would lead to the destruction of 20,000 legitimate coins, we believe this would be preferable as an alternative to leaving 1.7-1.8 million illegitimate coins in circulation. This will also eliminate the problem of oversupply.