Roger Ver, Jihan Wu and Jesse Powell have just escaped the Bitcoin Cash antitrust proceedings

A federal court in Florida has dismissed an antitrust lawsuit against Bitcoin.com founder Roger Ver and several other prominent figures in the crypto space accused of manipulating the market during the exchange news.

Other defendants in the case include Kraken CEO Jesse Powell, former CEO of Bitmain Technologies Jihan Wu, and Bitcoin Cash developers Shammah Chancellor and Jason Cox.

First submitted by United American Corp (UAC) in December 2018 and revised in March 2020. According to the lawsuit, the defendants worked together to rig the market in favor of Bitcoin Cash when multiple network participants were involved in the creation of a competing coin called Bitcoin SV.

During the Bitcoin SV hard fork – the event in which a network splits into two separate chains – the defendants are said to have “seized control of the Bitcoin Cash network” and “violated all accepted standards and protocols”.

However, on Wednesday (April 1), Judge Chris McAliley of the Southern District of Florida dismissed the lawsuit. According to the ruling, to be considered by the court, the lawsuit must “contain facts, not conclusions – show a legitimate conspiracy”.

The judge said at least two of the charges in the UAC’s complaint were direct allegations of lack of authenticity.

Network centralization

Tech-wise, the lawsuit claims that Ver, Wu and Bitmain Technologies have taken 90,000 Bitcoin miners (Antminers run on Bitcoin’s native network) and switched to Bitcoin Cash mining. This has increased the hash power in Ver’s Bitcoin.com mining pool by over 4,000% and effectively centralized the Bitcoin Cash network.

“A week before the software upgrade, the mining pools Bitcoin.com and Bitmain Technologies were jointly awarded 20.1% of the blocks. On November 16, 2018, the day after the upgrade, the same mining pools were rewarded with 98.85% of the blocks on the Bitcoin Cash network.

In addition, the defendant’s actions allegedly impacted the market prices of Bitcoin (BTC), Bitcoin Cash (BCH) and Bitcoin SV (BSV), forcing UAC off the network after investing more than $ 4 million in infrastructure had.

The Kraken cryptocurrency exchange allegedly initially refused to list BSV on its platform after making a public statement that “Bitcoin SV currently does not meet Kraken’s listing requirements and is unable to list BSV.” Three days after Bitcoin SV split from Bitcoin Cash. In fact, the FSIO is already listed on Kraken.

However, as Judge McAliley noted, “after careful consideration of the complaint. The court concluded that the lack of factual evidence provided evidence of an illegal agreement.

A long and turbulent road for Bitcoin Cash

Bitcoin Cash appeared as a hard fork of the original Bitcoin blockchain in August 2017 after a group of developers, backed by several large corporations, miners, and private investors, responded to the call to increase the block size from 1MB to 8MB.

A group of developers and other Bitcoin enthusiasts have teamed up behind Segregated Witness (SegWit), a Bitcoin upgrade that aims to increase the block size limit by removing certain data from the network.

Over time, Bitcoin Cash’s block size has increased from 8 MB to 32 MB. However, disagreements within the project also increased, eventually leading to another hard fork and the birth of Bitcoin SV (Satoshi’s vision) in November 2018.

Under the direction of the self-proclaimed Bitcoin inventor Craig Wright, BSV is designed as a software alternative to the Bitcoin ABC implementation of Bitcoin Cash. Later, Roger Ver and Jihan Wu were also among their supporters.

Almost three and a half years later, two projects led their own lives, Bitcoin Cash went through another hard fork in November 2020.

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After decrypting

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