Justin Sun to Personally Sponsor Ethereum DAO Victims after Vitalik Slams Steemit Freezing Funds
- Ethereum’s Vitalik Buterin on Steemit freezing millions of funds: A blockchain is not its maintainers' property
- Blockstream people jumps in to remind Buterin of the 2016 DAO attack
“And just like that. 1 million dollars worth of crypto stolen from me and millions more from others in broad daylight,” tweeted Steemit user “The Call Me Dan.”
Justin Sun acquired Steemit (STEEM) blockchain application is going through a hard fork that is freezing 23.6 million STEEM tokens worth $5 million.
Tron founder and CEO Sun acquired Poloniex exchange has already disabled STEEM deposits and withdrawals in anticipation of this hard fork version 0.23.
This hard fork is sanctioned by network validators called ‘witnesses’ that were associated with Sun and punishing those who opposed Sun’s hostile takeover and supported Hive hard fork in March.
With Hive, the community froze the founder’s reward that Sun acquired along with the platform in March 2020. The Hive blockchain is currently ranked at 65th by market cap. Until today, it was a few steps ahead of Steem only for STEEM prices to jump 24% and get 63rd place.
dPoS collapses into cartelchain
The hard fork includes the names of 64 users in its code whose accounts and funds are frozen.
Reportedly, these account holders are “spreading fake news, writing offensive and pointless spam comments,” and “publicly attacking users, collecting personal information, and threatening murder.”
A Steam user whose funds will also be frozen said there is no proof of the alleged criminal activity.
If this is accurate then in my opinion it will result in a class action lawsuit and the exchanges that participate in this will also be named defendants. #steemHF23 https://t.co/KBKOqsl2lu
— Andreas ☮ 🌈 ⚛ ⚖ 🌐 📡 📖 📹 🔑 🛩 (@aantonop) May 20, 2020
Targeted users are urging cryptocurrency exchanges not to implement the hard fork and threatening civil liability if they proceed with it.
In response to this, Sun said he is involved in the hard fork but does “see where they are coming from. The Hive witnesses took their assets away from them by force, causing huge losses to them.”
The moment Tron competitor Ethereum’s co-founder Vitalik Buterin chimed in, it was time to remind him of history.
The blockchain technology company, Blockstream’s Grubles said, Buterin “led the initiative to seize millions of ETH from The DAO hacker,” via "irregular state intervention” - rollback.
That's a lot of money! You must be the greatest thief of all time😮 https://t.co/2jxlZn51qg
— Justin Sun (@justinsuntron) May 20, 2020
Sun took this opportunity to “personally 100% sponsor anyone who was harmed by the DAO incident to seek damages from Vitalik Buterin.”
This is exactly the correct take. A chain is its maintainers' responsibility, not their property. And that responsibility can be taken away at a moment's notice. https://t.co/R8aT4ttufK
— vitalik.eth (@VitalikButerin) May 19, 2020
All of this saga could just be entitled "dPoS collapses into cartelchain," said Nic Carter, co-founder of Coin Metrics. “Open secret that most public blockchains have a total contempt for the property rights of users. very few consistently respect them.
Just when you thought the #Steem and #Hive saga could not get crazier, the account receiving the "seized" tokens from Steem's HF23 got "hacked" and sent 23,6 million STEEM to @BittrexExchange with no memo, leaving the message "stealing is bad" to @justinsuntron pic.twitter.com/5s7PnN8c3K
— Fredrik Aarrestad (@FAarrestad) May 20, 2020