Roger Ver, Bitmain, Kraken and Bitcoin.com are being sued by the Florida based company United American Corp. (UnitedCorp) for allegedly planning to take control of the Bitcoin Cash network.
UnitedCorp, founded in 1992, is a management and development company which focuses on telecom and IT. The firm manages portfolios of patents as well as proprietary technologies for the telecom, social media and Blockchain spaces.
The lawsuit was filed at the US District Court for the Southern District of Florida, and it claims that the defendants has partnered together to use unfair means to manipulate the Bitcoin Cash network for their benefit.
According to a statement released by the company, UnitedCorp alleged that the defendants colluded to hijack the Bitcoin Cash network after the hard fork that took place on November 15 last month, with the intent of centralizing the network. The company stated that this was in violation of the standards and protocols put in place since the inception of Bitcoin.
Immediately after the hard fork, which split the community into two camps – Bitcoin ABC and Bitcoin SV – the defendants (who belong to the Bitcoin ABC camp) used rented hashing to mine the newly updated network.
According to UnitedCorp, this added rented hash power allowed the Bitcoin ABC camp to take control of the network and have users adopt their set rules. This, the company stated, prevented other groups from maintaining democratic, consensus driven rule sets.
The suit is looking at getting injunctive relief against the accused and is also demanding the cessation of all actions against the Bitcoin Cash network. UnitedCorp also is seeking compensation, however, the value of that compensation will be set during the trial.
Massive Drop in BCH Prices
Bitcoin Cash, the number 4 cryptocurrency in the world till yesterday, saw a massive decline in its trading in the last 24 hours. The altcoin is now down by 20% since yesterday, and is trading at a token price of $101.71 at the time of writing this article and has been pushed down to seventh place in the top ten cryptocurrency list.
In contrast, the price of its rival, Bitcoin SV, has skyrocketed in the same time period. The brand new altcoin has jumped by over 27% since yesterday, and has moved up to take fifth place on the top ten cryptocurrency list. The cryptocurrency is currently trading at a price of $111.51 per token at the time of writing this article.