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Report: Two BCH Mining Pools Plotted a 51% Attack to Stop Hacker

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BCH hacker

A few days ago, a malicious bitcoin cash (BCH) miner tried stealing $1.35 million from the network. The miner exploited a weakness on the BCH blockchain to obtain these funds. However, two other miners stopped the attacker by exploiting another vulnerability on the network.

According to a report, the most recent bitcoin cash hard fork, which occurred on May 15 led to a “double spend” attack of $1.35 million. After the network upgrade, 25 transactions involving 3,392 BCH were not added to the reorganized chain. This means the above coins could have ended up in a hacker’s control. The publication notes that the initial hacker could be the only victim regarding the double spent coins. The two miners namely BTC.com and BTC.top, which control more than 50 percent of the BCH network conducted a 51% attack to reverse the hacker’s transactions.

Although the two mining pools thwarted a bad actor, their actions spurred some controversy. Considering that they have the power to control the transactions on the BCH blockchain. The bitcoin cash community now believes that the network is more centralized than they thought.

Reactions from the BCH Community

After this news surfaced, Kiarahpromise, a BCH developer posted a blog post noting,

To coordinate a reorg to revert unknown’s transactions. This is a 51% attack. The absolutely worst attack possible. It’s there in the whitepaper. What about (miner and developer) decentralized and uncensorable cash? Only when convenient?

In response, Jonathan Silverblood, a bitcoin cash advocate said,

This is a very unfortunate situation, but it is also what proof of work actually is. The miners in this case did choose to drop prohashes block and from what I heard, it is because they deemed a transaction within it to have been invalid.

How the Attack Occurred

Guy Swann, the host of bitcoin podcast explained,

In this case, the original attacker discovered that the 3,392 coins were theirs to take. While attempting to steal the coins, BTC.com and BTC.top saw this activity. The two mining pools then decided to reorganize and remove the transactions of the malicious miner in favor of their own.

Swann added,

Do you think the BCH network is as centralized as its advocates believe? Let us know in the comments below.

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