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Roger Ver, Bitmain, Bitcoin.Com, and Kraken Bitcoin Exchange Brought to Court for Manipulation Charges

Redwan Eid | Dec. 7, 2018
Roger Ver, Bitmain, Bitcoin.Com, and Kraken Bitcoin Exchange Brought to Court for Manipulation Charges

December 07, 2018 | AtoZ Markets -The development and management firm UnitedCorp has filed a lawsuit against all of Bitmain, Bitcoin.com, Roger Ver, and the Kraken Bitcoin Exchange, for what it alleged of manipulating the Bitcoin Cash BCH network.

Founded in 1992, UnitedCorp is a Florida-based United American Corp, focuses in its business on telecommunications and information technologies, managing a portfolio of patents and proprietary technology in telecoms, social media and blockchain, in addition to running its our blockchain stations, which carries the name of BlockchainDomes, which provides heat for agricultural applications.

At the U.S. District Court for the Southern District of Florida, the company claimed in its case that the defendants tampered the BCH network through using “unfair methods and practices” to drive according to what serves their personal interests, which consequently caused damage to 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.”, said UnitedCorp in its press release published Dec. 6th.

As AtoZ markets published, the the BCH network underwent an update on Nov. 15, that is known of a “hard fork”, resulting in dividing the coin into Bitcoin Cash ABC and Bitcoin Cash SV.

The manipulation caused the company damage and might entitle it to ask for compensation

As the filing paper narrates, the accused names gained control over the network directly after the update was implemented, using what was called “rented hashing.”, which allowed them to almost monopolise the Bitcoin ABC rule sets, the thing that resulted, as per the media description, “precluding other implantations from maintaining a democratic rule sets”.

Interestingly, UnitedCorp also claimed that on Nov. 20 the Bitcoin ABC development team planted a “poison pill” into the blockchain by way of a “Deep Reorg Prevention” for enabling them of a stronger control over the blockchain ledger, which also helps in maintaining the control mechanism of further updates in the future.

UnitedCorp asks in its case for compensation for the alleged damage that happened to its business, however the sum will be specified at the awaited trial.

It is worth mentioning that Bitcoin Cash has registered major losses on the day, of which Altcoin is not far from, being down by over 20 percent over the last 24, according to CoinMarketCap.

Bitcoin SV (BSV), in turn, has seen noticeable daily gains of over 27 percent, and is trading around $112 at press time.

BSV, with its maximum supply that is 21 million, and  market capitalization of around $1.9 billion as reported around press time, has seen noticeable daily gains of over 27 percent, and traded at around $112 earlier today.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.