A Florida-based company UnitedCorp has filed a complaint in the U.S. District Court in Florida against the controversial CEO of Bitcoin.com Roger Ver, China’s largest Bitcoin miner Bitmain and crypto exchange Kraken, according to a post published yesterday. The company accuses the three of fraud and market manipulation. The accuser alleges that the three suspects worked with the Chinese government to centralize or take full control of the Bitcoin Cash (BCH) network.
“UnitedCorp believes that the defendants colluded to effectively hijack the Bitcoin Cash network after the November 15, 2018 scheduled software update with the intent of centralizing the network — all in violation of the accepted standards and protocols associated with Bitcoin since its inception,” Globenewswire reported.
The company petitioned the court for emergency injunction relief, citing the significant damage the mining cartels inflicted following Bitcoin Cash hard fork on November 15. According to many industry experts, the contentious BCH hard fork is the main reason the crypto market is bleeding at the moment.
Bitmain’s CEO Jihan Wu, US-based Kraken exchange, and the defacto face of the Bitcoin Cash (ABC) Roger Ver are said to have taken a controversial move to assign the official BCH ticker to ABC instead of SV.
An excessive amount of hash power relative to its respective profitability was securing Bitcoin Cash ABC network, meaning miners were mining at a loss.
A well-known Bitcoin maximalist and crypto trader WhalePanda said in a tweet that the involvement of Bitmain CEO Jihan Wu in this fiasco boosted the hash rate.
Also, the bitcoin.com pool briefly diverted its hashpower from mining Bitcoin to mining Bitcoin Cash (ABC).
The lawyer representing the UnitedCorp Brian Miller said that there was a scheme by a network of individuals working to artificially inflate the value of Bitcoin ABC, taking over the BCH network and centralizing the market.