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United American Corp, a Florida-based development and management company, has launched a suit for damages and injunctive relief against Bitmain, Bitcoin.com, Roger Ver, the Kraken Bitcoin Exchange, and other individuals.
UnitedCorp alleges that these individuals and organizations were complicit in a well-planned scheme to take control of the Bitcoin Cash network for personal gain. UnitedCorp claims that these illicit activities caused global capitalization meltdown of the Bitcoin Cash network at the expense of others.
Bitcoin Cash had reportedly lost over 20% of its value during the first week of December. It continues to suffer from hashed prices. According to the lawsuit launched by UnitedCorp on December 6, the company alleges that the accused collectively engaged in unfair methods of competition and through a series of unconscionable, deceptive and unfair practices, manipulated the Bitcoin Cash network for their personal benefit and to the detriment of UnitedCorp and other Bitcoin Cash stakeholders.
United Corp announced this lawsuit in a press release on the same day they filed the lawsuit. According to the press release, UnitedCorp believes that the defendants colluded to effectively hijack the Bitcoin Cash network after a software update that was scheduled to be carried out on November 15, 2018. The intent of the update is claimed to be centralizing the network. All of these actions stand in violation of the accepted standards and protocols associated with Bitcoin since its inception.
As is true with any blockchain based cryptocurrency, Bitcoin Cash is incredibly difficult to tamper with or manipulate. However, it could be done if an entity or individual somehow gained control of 51% of its network. Such a tip in control would enable the entity to reverse transactions and double spending among other serious consequences. Double spending means the ability to spend the cryptocurrency more than once.
According to the press release, UnitedCorp alleges that on November 15, 2018, the Bitcoin Cash network underwent an upgrade using the Bitcoin ABC 0.18.4 implementation, which allowed the defendants to take control of the Bitcoin Cash network immediately after the update. The lawsuit claims that the defendants used something called ‘rented hashing’, which is the process of artificially and temporarily deploying or redirecting computing power to take control of the network. Through this process, Bitcoin ABC new rule sets were applied over the implantation that would have maintained democratic rule sets.
“We are bringing this suit on behalf of UnitedCorp,” said the President of UnitedCorp Benoit Laliberte, “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.”
This lawsuit has made huge claims against some of the most prominent entities and individuals in the crypto asset world. If convicted, it could deeply affect the public’s trust in cryptocurrencies and decentralized technologies.