, 15 tweets, 12 min read Read on Twitter
‼️#BCH /#bcash was hit by 51% attack from just 2 miners, BTC.TOP & BTC.com
- & no one seems to be talking about it. 🤨

Thread 👇🏻

1/ What I've gathered from loose details:
First, there was an unintentional split with the recent #BCH "upgrade."
Since the original split in 2017, there has been a significant number of coins accidentally sent to "anyone can spend" addresses (due to tx compatibility of sigs, but no #SegWit on #BCH), or possibly they've been replayed from #Bitcoin onto the #BCH network.
Because of this, tons of coins (#BCH) would essentially be "up for grabs." However, devs implemented a protocol rule called CLEANSTACK, making P2SH coins unspendable.

This was to be removed with May 15 fork, basically handing the coins to miners.
During the unintentional fork, someone exploited a bug (details are really hard to find) to add invalid TXs to @Bitcoin_ABC's client mempool.

To counter, BTC.TOP mined empty blocks (the bad TXs made blocks impossible to produce)

Due to low hash rate of the network, BTC.TOP actually controlled over half (~54%) of #BCH hash power. Putting them in a position to essentially dictate which blocks were accepted by the network.
(we'll see the problem here in a sec)

In the confusion, an unknown miner (possibly the attacker, but unconfirmed) tried to snatch a bunch of P2SH/#Segwit coins. But BTC.TOP & BTC.COM were expecting, and/or preparing to recover SegWit coins themselves...

According to discussions, BTC.top and BTC.com were working with another party to recover #SegWit coins to rightful owners (exchanges and/or users).

How they sourced the rightful owners I'm not sure, but this appears to be "reddit consensus."🤔
When the unknown miner tried to take the coins themselves, BTC.TOP & BTC.COM saw & immediately decided to re-org & remove these TXs, in favor of their own TXs, spending the same P2SH coins, + many others.

It apparently took hours to figure out what happened as none of this was public yet.

It appears the 2 miners were ready & communicating with each other directly & possibly another party (exchange or devs) for coordinating the re-org. Cant find specifics from involved parties.
So just 2 miners, in secret & w/ no trouble, took it upon themselves to remove 2 blocks w/ another’s TXs, & replace with their own.

Bizarrely, some are celebrating!

Some devs are quiet, but jtoomim (#BCH dev) called it “justice,” & “punishment” for “antisocial behavior.”
One dev seems to be actually discussing how dangerous of a precedent this was & has the only write-up that I can find so far on what exactly occurred. #BCH
This is what everyone warned about of endless HFs. Its an attack vector, kills Lindy effect, & has turned #BCH into a political mess where private comms control what does/doesn't get in a block.

I can’t tell if no one cares, or if they just want to ignore it? 🤔
There are at least a few people (maybe only partially) realizing that this basically kills any perception that #BCH is "decentralized, censorship resistant money." And leaves them to fight over whether the miners are "good guys" or "bad guys" with their actions.
Very curious to see others who could dig further (& more thoroughly) into this, as details are not easy to find, & there seem to no articles about the 51% as far as I can tell. 😁

@nic__carter @DZack23 @MessariCrypto @BitMEXResearch @jimmysong @AaronvanW @TuurDemeester
For those who'd rather listen 🔊 🔥

I threw together an episode summarizing the thread & explaining why I think this was a terrible idea.

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