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The mysterious account “saves” $ 6 million to STEEM, who was confiscated by the fork

May 21, 2020

As part of Steem’s long drama, the Steem Network (STEEM) experienced another fork today. The new fork was specifically designed for “constant attack on malicious accounts” and does not appear to have been entirely successful.

The 0.23 fork called “New Steem” had two main goals. The first was to reduce the inactivity period from 13 to 4 weeks. The second was to take 23.6 million STEEM tokens from Steem’s accounts and the stakeholders associated with Steem’s blockchain fork and rebellion, Hives Blockchain.

This latter goal apparently failed because the confiscated funds were “saved” from an anonymous account with the major crypto exchange Bittrex. This is the result of a contribution by Andrew Hamilton, CEO of JPB Liberty and Steem participant, on May 20.

Mysterious Steem account

The mysterious account “saves” $ 6 million to STEEM, who was confiscated by the fork
The mysterious account “saves” $ 6 million to STEEM, who was confiscated by the fork

In another attempt to “protect users’ property rights in the Steem community,” led by Justin Sun of Tron, Steem intended to confiscate some user accounts that were allegedly a threat to the network.

The fork planned to transfer money from 64 Steem accounts to another Steem account called “community321”. Bittrex was aware of the plan and provided the following details in a post on May 19:

“The proposed junction is considered a controversial junction because it transfers the money from 64 user accounts to a STEEM account called” community32 “.

Shortly after the funds were transferred to the Community32 account as planned, STEEM tokens worth approximately $ 5.7 million were sent to Bittrex. According to Steem’s blockchain explorer, Community32 account Bittrex specifically asked to return the “stolen funds” to their owners:

“These are the funds that Steems’ witnesses stole with HF23 on May 20, 2020. Please return them to their original owners before the fork :)”

The intentions and property of community32 have yet to be clarified

It is not clear whether community32 is connected to Hive. At the time of publication, the Steem Blockbrowser website states that the ownership and intentions of the Community32 account have not been disclosed.

Hamilton told Cointelegraph that the Community32 account was probably controlled by someone behind the 0.23 fork. According to the CEO of JPB Liberty, there could be several scenarios that led to community321 doing this:

“It seems like Justin Sun didn’t keep the basic key of this account safe. Maybe he got someone to make it for him and that person kept a copy of the keys. Maybe he copied them somewhere where he didn’t should have been. ” did it. “

Brief history of Sun’s Steem drama

The event is just the latest episode in the long-standing controversy surrounding Steem and Hive, a blockchain that appears to have arisen from the frustration of the Steem community over Sun’s involvement in the Steem blockchain. Shortly after Steemit announced that its platform would switch to the Tron blockchain in February 2020, part of the Steem community launched its own fork called Hive.

Today’s drama is not the first attempt to seize funds on Steem’s network. In early April, Steem announced a fork to freeze 17.6 million tokens related to his previous witnesses. The drama continues to escalate as leaders of the crypto community appear to support anti-centralization rebels like Hive. Ethereum co-founder Vitalik Buterin He suggested that Steem users should switch to the Hive blockchain in response to Steem’s seizure on May 20.

Meanwhile, Sun denies his participation in the last fork, but continues to fight Hive. In one Tweet On May 20, Tron’s CEO said he was working with law enforcement to fight Hive’s witnesses:

“As for Steemit Inc., millions of dollars have been stolen from Hives’ witnesses. We are working with law enforcement agencies and will take steps to recover our funds. We are very sympathetic to all Steem witnesses who have suffered the same way. Hands of Hives witnesses. “