Bitcoin SV comes under attack and brokerages suspend currency withdrawals and deposits

Charlie Taylor

Brokers Huobi, Bitfinex, KuCoin and Hotbit have suspended Bitcoin SV (BSV) withdrawals and deposits from their platforms without notice after the cryptocurrency ecosystem has become targeted by hackers in recent days. Although the purchase and sale of BSV tokens on the four exchanges is still working normally, two users consulted by Bitcoin Portal on Tuesday (13) confirmed that it is not possible to withdraw the cryptocurrency on these platforms. As a result of these measures, the trading volume of the cryptoactive suffered a sharp drop of 54% on Tuesday, according to data from CoinMarketCap. Suspended BSV withdrawals on the Huobi, Bitfinex, KuCoin and Hotbit exchanges. The case gained more community attention yesterday when yet another exchange, this time Gravity, broke off all Bitcoin SV trades after its liquidity providers decided to suspend access to the currency to ensure the security of the network and its assets. The Houbi team — the exchange responsible for the largest volume of Bitcoin SV trading — confirmed to journalist Colin Wu on Friday (9) that the withdrawals were interrupted due to instabilities in the hashrate of the BSV, ie, its mining power. The message cites that the measure is intended to make it difficult for possible malicious actors who could be preparing for a double-spending attack, an offensive in which the user is able to spend more than once the same cryptocurrency.

What's going on with Bitcoin SV?

some appeared rumors in the community that Bitcoin SV had suffered a 51% attack last week. However, the Bitcoin Association, a Swiss organization responsible for the BSV project, has not confirmed the attack. Despite this, the association admitted in a Thursday (8) note that the network was targeted by hackers, without giving details about the seriousness of the offensive. "A malicious agent recently carried out block reorganization attacks on the Bitcoin SV network, which appear to be intentional acts in an effort to mask an illegal double-spending of coins." The note states that one of the addresses from which the attack came was already associated with cases of ransomware and other attempts to attack the Bitcoin and Bitcoin Cash network in the past. The entity advised cryptocurrency brokers to freeze any attempt to deposit addresses associated with illegal activity. Exchanges, however, seem to have taken a more drastic step and blocked these transactions for all currency users. The association already indicated in the note that this could happen: "Some brokers may choose to take additional protective measures at their discretion."

the decline

Bitcoin SV came about in 2017 through a hard fork of Bitcoin Cash (BCH) — which in turn is a hard fork of the original bitcoin — created by Craig Wright, a guy who claims to be Satoshi Nakamoto. The controversies that the entrepreneur, from time to time, are involved in in the crypto environment directly impact the currency that, over the years, was removed from several brokerages as a reprisal for Wright's attitudes. In addition to the very low credibility that the cryptoactive has on the market due to its creators, its ecosystem has also been decreasing. Listed on Tuesday at US$ 132, BSV is one of the few cryptocurrencies in the top 100 that has accumulated a devaluation of 18% in the year. Brazilian trader Paulo Sousa, who confirmed for the report that the BSV withdrawal was suspended at brokerages, was a supporter of the project since its creation, but with time, ended up giving up. “I had gone into it a lot, it had great concepts. But when I started going deeper into the project and getting to know the whole community, how they think, who they are, I was left behind by the toxic community and Craig Wright's crazy things”, explained Sousa. Many miners have also abandoned the project in recent times, causing an 81% annual drop in the Bitcoin SV hashrate, according to BitInfoCharts. The lower a network's hashrate, the more vulnerable it becomes to 51% attacks where a single group can take control of the blockchain and defraud transactions for their own benefit. In addition, the decentralization of the Bitcoin SV network has been questionable for some time, as Taal Technologies, a company listed on the Canadian stock exchange, currently controls 77% of all cryptocurrency hashrate, according to data from the Coin Dance aggregator . The company Taal Technologies is responsible for 77% of the Bitcoin SV hashrate. Source: (Coin Dance)

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