BitMart seeks restraining order against ‘fake’ Bitcoin SV

GBM Global Holdings, the group behind the BitMart cryptocurrency exchange, has sought a court order restraining operations with “fake” Bitcoin SV (BSV). The filing was submitted to the United States District Court for the Southern District of New York, Law360.

On July 8, the Switzerland-based Bitcoin Association said the Bitcoin SV network had suffered a reorganisation attack.

Bitcoin Association has been made aware of a recent illegal block re-organisation attack against the #BitcoinSV network by a malicious actor.

We have zero tolerance for any illegal activity and are actively pursuing legal action.

Full statement below.https://t.co/VS2ZbNEJNT

— Bitcoin Association (@BitcoinAssn) July 8, 2021

The organisation advised trading platforms to block deposits “from any addresses associated with illicit activity”.

“Protective measures were taken in the BSV network, and since then there have been no further attacks,” added added to the Bitcoin Association.

According to Law360, on July 8 GBM Global Holdings detected BSV generated as a result of the attack. The platform claims it detected fraudulent transfers “to at least eight other exchanges, including Binance, Huobi, OKEx and KuCoin”, as well as “two transactions with New York-based BitMart clients”.

GBM believes Chinese hackers are behind these actions. They released BSV in violation of U.S. law and deceived “at least 43 users”, the company says.

Although the defendants are outside New York, GBM has asked the court to intervene to protect local customers.

“The defendants are foreign hackers who cannot be identified, […] there is little chance they will pay damages. Other than obtaining a court order on the already identified, unlawfully created cryptocurrency, the claimant has no path to securing final redress,”

In 2018, the Bitcoin SV cryptocurrency network, supported by self-proclaimed Bitcoin creator Craig Wright, was subjected to a reorganisation attack. At the time, some community members speculated that the aim was to delay the process of enabling deposits on exchanges.

Back in July, attackers carried out a DDoS attack on the Bitcoin.org site and demanded 0.5 BTC. This followed Wright’s victory in court in the case against the site’s owner under the alias Cobra.

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