, 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."
2/
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.
3/
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.
github.com/bitcoincashorg…
4/
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)

coinspice.io/news/unknown-a…
5/
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)

bitcoinexchangeguide.com/is-bitcoin-cas…
6/
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...

honest.cash/kiarahpromise/…
7/
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."🤔
8/
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.

honest.cash/kiarahpromise/…
9/
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.
10/
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.”
11/
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
12/
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? 🤔
13/
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.
14/
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. 😁

/fin
@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.

anchor.fm/thecryptoconom…
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