With the year coming to an end, many scams surrounding the cryptocurrency world are now coming into the limelight, with many trials underway. Bitcoin Private [BTCP] has been surrounded by a controversy involving the creation of 2 million additional coins without disclosure in the project’s white paper. This had lead to many enthusiasts and investors questioning whether they were intended to exist at all.
BTCP is a part of one of many hard forks that happened in the past two years. It is a merged fork of Bitcoin and Zclassic, which is also a fork of Zcash. The fork took place earlier this year in February after developers wanted to create a privacy-focused version of Bitcoin that borrowed elements from Zcash or Zclassic, reported Cryptopotato.
Even though hard forks happen due to real disagreements between developer communities, many have alleged that the many Bitcoin forks were just a mere trick get money and opportunities to make money while capitalizing on the brand name Bitcoin.
This was first discovered by digital assets analytics website, Coinmetrics. The site had published a report that read:
“2.04 million units of altcoin BTCP — about $3.9 million at the time of the discovery, were secretly minted”.
BTCP swiftly responded to the claims made by launching an internal investigation to verify the validity of the claim. They found that the allegation was “mathematically accurate”.
One of the developers, after solving an issue, merged their code with a missing line, “allowing the fork mine to be exploited due to the nodes not properly verifying the falsified fork blocks”.
BTCP informed that the developer left at the end of the project. The bug that was introduced after merging the codes was exploited to create more than 2 million new coins when BTCP was announced.
BTCP developers team wrote:
“As the code was open source, and the fork-mine was announced on Twitter, anyone with sufficient blockchain development knowledge could have exploited it.”
“This particular exploit could only be taken advantage of during the fork mine, which already occurred earlier this year. Therefore, it is impossible for this particular bug to exploit to occur again, nor can it be further exploited.”
The BTCP team is still unaware of the person behind this act and according to their official statement, there are less than 20k legitimate BTCP coins that currently exist. They exist in a shielded addressed along with 1.7-1.8 million illegitimate coins.
BTCP is thinking along the line of introducing a hard fork to remove all shielded coins from existence. This will result in not only the eradication of 1.7-1.8 million illegitimate coins in circulation, but also the legitimate 20k coin. They also stated that this move will help them fix the over supply issue.
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