Chinese Police to Bust Another Crypto Scam

Stolen funds, more than $193M in cash were stored in a specially purchased villa
01 February 2019   496

Law enforcement agencies in the Chinese city of Xuchang detained 27 people suspected of organizing a cryptocurrency pyramid with strange name I Am a Clown (IAC), whose capitalization was about $ 193 million, according to the state television chanell CCTV.

The stolen funds — more than 1.3 billion yuan ($ 193 million) in cash — were stored in a specially purchased villa.

IAC was supposed to become a platform for developing a large-scale social network based on blockchain technology, Big Data and artificial intelligence. Acting according to the classical Ponzi scheme, the company representatives asked to invest in the project a cryptocurrency, in return promising a huge income.

It is also reported that the main suspects were hiding outside of China and managed the platform remotely, with the help of hired personnel. To conceal their personalities, fraudsters used fake corporations.

The suspects were detained back in August 2018, but the investigators released the details of the operation only this week.

Bitcoin SV Blockchain to Undergo Reorganization

This happened due to the fact that some blocks were rejected by Bitcoin SV blockchain
19 April 2019   104

Several blocks were rejected by the Bitcoin SV network after the addition, which caused the re-organization in the blockchain's history.

Almost each time someone is trying to produce a very large block on the BSV chain, there’s a reorg. Just an hour ago our Blockchair engine has witnessed a 3-block reorg (I think that's a record)! Blocks #578640–578642 got orphaned by a longer chain because they were too big

Nikita Zhavoronkov

Lead developer, Blockchair

The large blocks, about which Zhavoronkov writes, are no longer displayed by the blockchain browser, since they are not part of the main chain in which they were located until a certain moment, until they were replaced by another chain, which eventually became dominant.

This is basically exactly the problem the BU gigabock testnet identified. At sizes > 100mb the mempools were so out of sync that blocks were basically transmitted as full blocks.

BSV had ONE 128mb block and it caused a six block reorg. On the BU testnet sustained 128mb blocks caused a total breakdown of the chain where there were so many reorgs that every node had a different view of the state of the blockchain.

Chris Pacia

Developer, Bitcoin

Thus, Chris assumes that the problem is caused not by the malicious actions of the network members, but by its functional bug. 

This update is noticeable in the background of recent Bitcoin SV delisting campaign, which was started by the number of big exchanges as a reply to lawsuit by Craig Wright, BSV supporter, against anonymous critic.