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Bittrex is confused about the theft of 24 million STEEM tokens confiscated from their account

May 22, 2020

Shortly thereafter Unknown company “redeemed” or took away $ 5.7 million in STEEM tokens the “New Steem” hard fork, Bittrex confirmed that the money had reached your account.

The exchange now faces the difficult decision of what to do with the 23.6 million from STEEM tokens allegedly stolen from Steem’s witnesses.

In today’s May 21 statement, Bittrex co-founder Richie Lai confirmed that the company that initiated the transaction, an account called “community321”, remains unknown to this day. Lai noted that there is a claim that the account may have been hacked outside of Bittrex.

Bittrex is confused about the theft of 24 million STEEM tokens confiscated from their account
Bittrex is confused about the theft of 24 million STEEM tokens confiscated from their account

The statement says:

“Someone deposited 23,627,501 STEEM into Bittrex’s main account this morning. What happened during the hard fork and the claim that the community321 account was hacked from the Bittrex ecosystem are two separate problems. We cannot confuse these two problems. “”

STEEM tokens were not claimed for Bittrex

Bittrex co-founder He said the exchange “will carefully check the origin of this transfer” to return the money to the original owner of the wallet. But to get this money back, the owners have to prove that the money belongs to them, Lai said. According to Bittrex The transaction was sent “without proper identification”., which makes it difficult to identify ownership of the fund.

Lai wrote:

“In such cases, if someone claims to be the victim of a hack, we request proof of ownership before we return the money to the person or people who claim to have been attacked.”

Bittrex spokesman Cointelegraph explained this The exchange must now check ownership due to the complexity associated with the type of checking account. Because Bittrex’s primary deposit account is “like a bank sort code,” every transaction must have a payer ID. The person said:

“When making a deposit into this account, you must have a note to identify who the payer is. […] Think of it this way: Our main account is like a bank sort code and the note / message is the bank account number. If a deposit is received without a memo that corresponds to one of our databases, it is classified as “unclaimed” until a user can prove that it is their property. “

“We have to live according to the rules of the blockchain”

Even if Bittrex apparently promised to return the money to its rightful owners.the exchange message can appear confusing. “Regardless of how this was accomplished, the blockchain consensus agreed that funds should be transferred from these 64 accounts to the Community321 account.”Lai said in the statement.

Finally, Bittrex co-founder believes “inviolability Blockchain “Must Be Over” Personal OpinionsLai wrote:

“We believe in the inviolability of blockchain and as an industry we have to adhere to the consensus rules without compromising our personal opinions. If blockchain is to be successful, we have to follow its rules.”

Bittrex can be made legally liable

Andrew Hamilton, CEO of JPB Liberty and Steem, told Cointelegraph this Bittrex has received stolen property and is required by law to return it to its owners Originals as directed by the party that transferred them to Bittrex. Hamilton said:

“While we like to use terms like” code is law “and” inviolability of blockchain “in the cryptocurrency industry, we also have to recognize that country law takes precedence over code law.

While Hamilton apparently means it the rightful owners of the stolen money If Steem accounts and stakeholders are connected to Steem Blockchain, Hive Blockchain, there is another party that claims ownership. Tron’s CEO Justin Sun, who believes Hives’ witnesses have stolen “many millions of dollars”works with the police to recover the money.

Bittrex is a important cryptocurrency trading platform, As of the date of this release, it was ranked the 17th largest cryptocurrency exchange worth $ 33.8 million. As reported by Cointelegraph, Bittrex was aware of the fork and planned token seizure before it occurred on May 20. As a result, on May 19, 2020, the exchange paused all deposits and withdrawals of STEEM and Steem Dollars (SBD).