Florida-based United American Corp. has purportedly filed a lawsuit against Bitmain, Bitcoin.com, Roger Ver, and the Kraken Bitcoin Exchange, according to a press release published Dec. 6.
UnitedCorp alleges that the defendants planned a scheme to take control of the Bitcoin Cash network.
Founded in 1992, UnitedCorp is a development and management firm with a focus on telecommunications and information technologies.
The suit filed in the U.S. District Court for the Southern District of Florida alleges that the defendants jointly used unfair methods and practices to manipulate the BCH network for their benefit and detriment of UnitedCorp and other BCH stakeholders.
"UnitedCorp believes that the defendants colluded to effectively hijack the Bitcoin Cash network after the November 15, 2018 scheduled software update with the intent of centralizing the network - all in violation of the accepted standards and protocols associated with Bitcoin since its inception."
On Nov. 15, the BCH network underwent an update, which divided the community into two main camps, those who support Bitcoin Cash ABC and those who support Bitcoin Cash SV. UnitedCorp states that the defendants took control of the coin's network right after the upgrade using "Rented hashing." This allegedly led to the adoption of Bitcoin ABC rule sets, precluding other implantations from maintaining a democratic rule sets.
UnitedCorp also alleges that on Nov. 20 the Bitcoin ABC development team put a "Poison pill" into the blockchain by way of a "Deep Reorg Prevention" in order to strengthen control over the blockchain ledger.
The suit seeks injunctive relief against the defendants, asking to prevent them from ongoing actions against the BCH network and doing so in the future.
Bitcoin Cash has registered the major losses on the day.
Bitcoin SV, in turn, has seen noteable daily gains of over 27 percent, and is trading at around $112 at press time.
Bitmain, Roger Ver, Kraken Sued for Alleged Bitcoin Cash Hard Fork Manipulation
Published on Dec 7, 2018
by Cointele | Published on Coinage
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