On August 4 to 5, 2021, the BSV network has been under attack once again by a malicious actor using block reorganizations to create fraudulent chains. This kind of attack is usually towards the double spending of coins. However, the attacks were successfully repelled and no BSV coin has been double spent. No further BSV attacks have been detected after the third attack was thwarted on August 5.
“This latest attack did, as reported, create three malicious forks containing substantial double spend attempts, the first two have been successfully repelled by honest miners choosing to reject fraudulent double spends in accordance with the Bitcoin whitepaper. The third chain is much smaller, just 13 blocks, which miners are in the process reversing as it is much more recent. While the motive isn’t entirely clear at present, it seems likely it is little more than theft and profiteering and the fact that we can now repel such actions is very encouraging. It has kept the exchanges, who were targets of these fraud attempts, safe and is completely in line with the White Paper,” Steve Shadders, nChain CTO and chairman of the BSV Technical Standards Committee, stated in emailed comments to Forbes.
BTC’s best use case is to fund attacks on BSV.
Meanwhile, the lack of utility means the BTC block size gets smaller. BTC can’t even hit it’s 1MB cap. SAD! pic.twitter.com/jBVrA2tkWM
— Coinspeak (@coinspeak_io) August 7, 2021
This is the second time that the BSV network has been the target of a series of block reorganization attacks within the span of a month, with the first one ending on July 9. Both series of attacks failed to double spend BSV coins. And with the network battle-ready from the first series of attacks, they are doomed to fail. This now begs the question of what the real motive is behind the attacks when the double spending of coins is almost guaranteed to fail. Many are creating their own conclusions, and one that is the most logical motive is that the attacks were geared towards doing reputational damage to BSV.
It seems that billionaire and philanthropist Calvin Ayre, a staunch supporter of BSV and founder of blockchain conglomerate CoinGeek, could not take the series of malicious attacks passively anymore. The CoinGeek Crime Bounty Program, similar to how the U.S. State Department offered a reward for information leading to the arrest of cybercriminals last month, has been launched on August 6. Ayre is personally funding the multi-million-dollar bounty program, and rewards will be negotiated depending on how useful the information submitted is.
it is an organized commercial attack on BSV by competing chains to try to make BSV look bad. To me what this really does is underline that criminality is what drives other chains and that they can not compete with BSV technically and legally.
— Calvin Ayre (@CalvinAyre) August 4, 2021
Ayre also wants to clarify that the CoinGeek Crime Bounty Program is not a one-time reward system that will end when the culprit of the BSV attacks has been apprehended. Although the impetus behind its launch is indeed to catch the perpetrator of the attacks, it the bounty program is actually “a long-term effort aimed at imposing order on a sector that has for too long been dominated by ‘code is law’ types.”
“If the digital currency sector wants to be taken seriously, it needs to both acknowledge the rot at its core and take the appropriate actions to excise that rot so that the healthy sections can thrive. The CoinGeek Crime Bounty Program is intended to help root out the crypto criminals and clear the way for builders to finally realize the massive benefits this sector has to offer,” CoinGeek author Steven Stradbrooke wrote about the launch.
Anyone who has information pertaining to the BSV attacks are encouraged to submit it to the CoinGeek Contact Us page. Please select the “Report Crime” topic in the form.