2 Million Illegitimate BTCP Coins in Circulation Forces Bitcoin Private Towards a Hard Fork

Bitcoin private (BTCP) has been recently been at the center of controversy relating to the conception of 2 million coins that were not disclosed in the projects white paper and were never intended to exist.

BTCP is one of many bitcoin hard forks that emerged in the past two years. It is a merge fork of Bitcoin and Zclassic (which is a fork of Zcash).

Claiming no prior knowledge of the pre-mine, Bitcoin Private team reports they’ve immediately started their own internal research into the situation. Confirming the mathematical accuracy of the auditor’s findings, they remained adamant that the final holder of these pre-mined funds wasn’t someone within the team.

On December 23, 2018, CoinMetrics released an article purporting a recent discovery concerning the Bitcoin Private fork.

The report reveals that independent auditors found discrepancies in BTCP’s reported and actual total supply; while BTCP team originally claimed that their coin’s supply is fixed at Bitcoin-like 21 million with 0 pre-mining, auditors found that more than 2 million BTCP were pre-mined during the project’s fork.

They acknowledged some of their mistakes in the blog post saying:

“Unbeknownst to Bitcoin Private, approximately two (2) million BTCP coins that were never intended to exist on the blockchain chain were created and moved to a shielded address. According to CoinMetrics, as much as 300,000 illegitimate BTCP were deshielded, though it is unclear at this time if these coins were sent to exchange or used/stored elsewhere.”

The go on to say that their team is still not sure who is behind the act. They say:

“ We are hopeful that with their forensic expertise in blockchain, we will be able to find the bad actor, expose them, and report them to the proper authorities. If suggested by CoinMetrics, we are willing to contact any and all exchanges as needed to uncover the truth of the matter.”

Publication date: 
12/29/2018 - 18:37

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.