Bitcoin SV suspended on several crypto exchanges over risks of double spending attack

  • Bitcoin Satoshi Vision (BSV) network was attacked in a recent illegal block reorganization.
  • Huobi suspended BSV deposits and withdrawals as the hashrate remains unstable.
  • Malicious actors attacked the Bitcoin SV network in an effort to mask the illegal double-spending of coins.

Bitcoin SV remains vulnerable to double-spend attacks as long as the network is unstable. Supporters have identified one of the wallet addresses associated with the attack that has a history of illegal activity. 

Double-spending attack threatens the stability of the Bitcoin SV network

The Bitcoin Association, a Switzerland-based non-profit organization, shared news of a double-spending attack targeting Bitcoin SV on July 8. The attack was discovered during regular monitoring of the network by the infrastructure team. 

Described as a block reorganization attack, it was carried out in an effort to mask the illegal double-spending of BSV tokens.  Double-spending attacks are easier on Bitcoin SV due to the limited number of nodes on the network. Indeed, it has a total of 199 nodes operating whereas Bitcoin (BTC) has over 83,000 nodes currently active.  

Bitcoin SV forked from Bitcoin Cash (BCH) in late 2018, and it is suffering from the same vulnerability that was identified in the latter.

In 2019, Github user Bordalix had reached a 22% success rate on double-spending on the BCH network. The same can be expected on the BSV network as the zero confirmation algorithm makes it vulnerable to this exploit.

The Bitcoin Association plans to file reports with law enforcement authorities and pursue legal action against the attacker. The organisation has alerted exchanges and asked them to freeze deposits and withdrawals to BSV wallets until the issue is resolved. 

Alex Speirs, head of communications at the Bitcoin Association said:

The Association will continue to maintain a zero-tolerance stance for illegal activity on the Bitcoin SV network and will respond to all malicious actors and activities accordingly.