The developers focused on increased privacy the first fork of the Bitcoin Private (BTCP) has submitted to the exchange HitBTC letter requirement in connection with the delisting, which they consider unfair.
Dear #BTCP community — please read the legal letter below, that uncovers @hitbtc and their questionable, unjustifiable reasoning behind the removal of Private Bitcoin from their exchange. https://t.co/Bp4Yjqp4Ez
Bitcoin Private [BTCP] (@bitcoinprivate) March 9, 2019
The letter said that in may 2018 the project team paid $500 thousand for listing at HitBTC in bitcoin equivalent. Simultaneously, representatives of the platform received a copy of the white paper, which described the mechanism of burning of the coins, which had to use in the future.
In December last year, analysts Coinmetrics found that during hard forks has issued “special blocks” with 400 additional outputs. Overall, it was created of 2.04 million coins on top of the limited emissions of 21 million addresses Hidden and the technology of the zk-SNARK allowed to hide this fact, and the sale of the coins could bring unscrupulous developer up to $3 million.
After conducting its investigation, the Bitcoin Private developers proposed to destroy all the coins to secure addresses by hard forks. Note that the team invited the community and a more radical solution — the destruction of all coins BTCP, which never moved more than 12 million
Users and support BTCP exchange was to move the coins to new wallets before block #480000 in order not to lose them. However HitBTC allegedly has not taken the necessary measures and lost 58.92 million coins during combustion.
The coinburn has been successful and devs are working hard on providing new stats regarding a circulating supply. Watch this space!#BTCP #BTC #fintech #crypto $BTC #DeltaDirect
Bitcoin Private [BTCP] (@bitcoinprivate) February 18, 2019
The exchange demanded that the team BTCP damages, making them responsible for the incident, and then conducted delisting coins.
HitBTC custodial service proves its security and reliability yet another time. Read more in our blog post: https://t.co/ELUsWUKIO5
— HitBTC (@hitbtc) March 9, 2019
“The developers have not provided us with a reliable tool for withdrawal SegWit addresses. The reason for delisting is the failure of the project to protect its users from the effects of burning coins. You cannot change the rules of the blockchain, if it will harm users.”
It is noteworthy that in a tweet dated February 11, HitBTC noted that the burning of the coins will not affect users because their wallets were created after hard forks BTCP. The developers of the project, called the statement nonsense.
As a result, the Bitcoin Private turned to HitBTC with a request to stop demanding compensation because the exchange is supposedly not right. In addition, the developers stressed that the holders of BTCP can file a class action lawsuit against the platform.
Recall hardwork Private Bitcoin took place on February 28.
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