The accusations are delineated in a letter written on 26th Feb., to the exchange by the Petros Law Group on behalf of the BTCP community, developers and contributors, and revealed by the Bitcoin’s private Twitter profile recently on 9th March.
In line with its authors, the letter that was revealed the day BTCP was ‘delisted‘ from HitBTC, alleged that HitBTC tried to extort BTCP following unresolved complications arising from the coinburn.
As per the document, from the starting of March last year, BTCP was ‘formed‘ in a hard-fork from ZClassic [ZCL] and Bitcoin [BTC] with a notice of a future coinburn in its whitepaper: the scheduled event was meant to delete (or “burn”) all the coins that haven’t been yet claimed [or moved] since its hard-fork. On 3rd March, last year, the day after its launch, HitBTC reportedly charged the Bitcoin Private team with a listing fees of around half a million dollars in Bitcoin [BTC].
Moreover, the document additionally included screenshots of apparently since-deleted tweets in mid-Feb. from HitBTC exchange, that explained to users that since the exchange’s BTCP addresses were formed, since after the hard-fork, users won’t be affected by the coinburn.
On 15th Feb., just a day before the coinburn was scheduled, HitBTC reportedly contacted Bitcoin Private requesting some assistance to secure its users’ funds via in a series of emails, that then escalated into a request for compensation of around 58,920 BTCP to be transferred after the coinburn due to the expected losses.
However, the document additionally underlines that Bitcoin Private addresses formed after the hard-fork won’t be affected, the exchange cannot have been so concerned regarding users’ loss of funds, as that situations isn’t expected to exist. Instead, the document alleges that HitBTC secretly held 58,920 Bitcoin Private in a very BTCP Segwit ‘wallet‘, along with the concerns over the coinburn were associated with the exchange’s personal funds.
The document additional claims that BTCP developers educated the exchange that they didn’t shall accommodate the compensation demand, however did offer technical help – shown with email screenshots, meant to assist and shield the funds from the coinburn.
Thereafter on 17th Feb., the coinburn reportedly happened, a day after it was forecasted, and on 21st Feb., HitBTC allegedly pressurized to pull over its support for Bitcoin Private, if the coin’s development team failed to compensate for 58,920 BTCP.
Previously on 9th March, HitBTC ‘announced‘ on its official web-blog stating that the BTCP team was unable to offer a secure way to transfer the funds before the burn, so the exchange paid-back all the custody losses.
As ‘reported‘ earlier in Dec,, throughout the import of Bitcoin chain data, an additional 2.04 Mln units of BTCP were reportedly secretly coined.
The discovery was however lately ‘confirmed‘ by the coin’s developers, who added that the findings were mathematically correct however “at now, the source, purpose, and recipient of this exploit is presently unknown.”