BSV Attacks Illustrate Network’s Professional Approach to Blockchain

The recent block withholding or reorganization attacks on the BSV network have illustrated the ecosystem’s professional approach to blockchain, as well as the effectiveness of its security and threat detection tools. Because the ecosystem was able to respond expeditiously, no BSV user or exchange was victimized by these malicious attacks—nothing was lost nor stolen.

Bitcoin Association, the Switzerland-based nonprofit global industry organization pushing for the enterprise adoption of the BSV blockchain, recently released a public statement in the form of answers to the most frequently asked questions about the attacks

According to it, “[the measures taken] include coordinating with miners and transaction processors on the Bitcoin SV network to implement both reactive and preventative measures—including fork detection tools that enable ecosystem participants and partners to move expeditiously in the face of attacks. Since these measures have been initiated, there have so far been no further attacks on the network.”

An unknown miner using the handle “Zulupool” attacked the BSV network using block reorganizations, which “are a feature of the Bitcoin system when they occur organically and are used to align participants and nodes on the network.” But when used for double spending, block reorganizations become fraudulent acts that are highly illegal. 

“The Bitcoin SV Infrastructure Team have identified one of the addresses connected with the attack (1G47mSr3oANXMafVrR8UC4pzV7FEAzo3r9) as being long associated with ransomware and other attacks on the BTC, BCH and BSV chains—so the malicious actor is engaged in illegal activity which could involve also BTC and BCH, and not just the BSV network,” the Association said in its initial public statement about the attacks.

The Association is conducting a thorough investigation on the matter, as well as collecting and documenting evidence left behind to be used in a criminal complaint. The Association follows a zero tolerance policy when it comes to illegal activity, and the recent events will be dealt with accordingly.

“Blockchains cannot themselves prevent bad actors. But by working together with exchanges, miners, transaction processors and other industry participants, collectively we can facilitate a safe and trusted environment for users of the Bitcoin SV network. There have been prior attacks on other blockchains, and it is time that industry participants demonstrate that such attacks are in fact illegal—just as attacks against other financial systems are illegal – and will be met with legal enforcement action,” the Association explained.

In parallel to these technical and legal measures being taken, Bitcoin Association is also constantly communicating with exchanges in order to give updates on the matter. As with all financial institutions under this type of attack, the Association has advised exchanges to freeze all BSV deposits related to the malicious attacks. The Association and its representatives are also working around the clock in order to restore all BSV services. In fact, many have already restored them. BSV is still safe to use and secure, and all operations have not stopped. This kind of attack does not deter the BSV ecosystem from functioning normally.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.