Bitcoin Private has confirmed that the findings made by CoinMetrics, a blockchain data publisher company, are valid.
CoinMetrics earlier alleged that Bitcoin Private inflated the supply of their coin with about 2 million units. The research company also indicated that some extra 300,000 Bitcoin Private coins had already been sent to exchanges. The team members of the private peer to peer cryptocurrency, however, denied having prior knowledge of the extra coins.
The Cause of the Extra Supply
Bitcoin Private has experienced a low rate of adoption from the Bitcoin community, and the extra coins are a significant number about what has been stated as the total supply of Bitcoin Private. The company have checked through their transaction records, quizzed their development team, and have concluded that the extra supply is as a result of a mistake by one of their developers, named airk42. The developer was hired on contract through a bounty after he solved an issue they had. A bounty is offered to members of the public who can complete a particular task and be rewarded in the project’s coins or tokens. Bitcoin Private indicated that;
“The developer completes the issue, merges his code, and is sent his reward. One line of code is missing which allows the fork mine to be exploited due to the nodes not properly verifying the falsified fork blocks. […] The missing line of code is as follows: || tx.vout.size() > 1. We determined this after the CoinMetrics report was released.”
During the investigation, Bitcoin Private determined that the developer didn’t make use of the mistake to create the extra coins. It was decided that another person, who uncovered the bug, used the creation of BTCP’s fork to create the 2 million extra coins. The team was, however, oblivious of the additional supply until CoinMetrics made the allegations of the “Bitcoin Private fraud” public.
In the announcement made by Bitcoin Private, they requested exchanges on which BTCP was being traded to stop deposits and withdrawals of the coin. The addresses to which the extra coins were sent were shielded in a bid to cover the tracks of the perpetrator. The exchanges to which the extra coins were sent to can, however, divulge the identity of the perpetrator if they are required by law to do so. All it would take would be a lawsuit filed against the exchanges.
Who’s the Black Sheep?
It has been theorized that whoever committed this crime would have needed to have in-depth knowledge of Bitcoin Private and these point hands at the development team and the author of the bug, Airk42. A request has been made to crypto exchange, HitBTC, to divulge the identity of the user possessing the extra Bitcoin Private coins. It has been deemed unlikely that HitBTC would reveal the identity without legal proceedings due to the Exchange-User agreement.
Bitcoin Private also added that they would destroy all the coins in shielded addresses, which would most probably destroy legitimate coins too. There would be an activation of a hard fork to rewrite the blockchain. Several in the crypto space have predicted that following the extra supply action and the response made, Bitcoin Private would cease to exist after a while. Some feel that the price of Bitcoin Private would reduce so badly that the Bitcoin Private community would simply leave.