Bittrex Exchange Won’t be Returning the ‘Stolen' $5M in Funds From Steem Owners

The announcement from Bittrex makes for some terrible reading for those whose tokens are now lost.

Yesterday, the Steem blockchain went through the controversial hard fork 0.23 that seized the tokens of former Steem “witnesses” — blockchain validators that created another blockchain called HIVE.

The hard fork – codenamed “New Steem” – seized 23.6 million STEEM tokens from 64 witnesses.

A letter was also sent on Tuesday by a legal firm representing the affected members, urging cryptocurrency exchanges not to support the hard fork.

But Bittrex would be doing no such thing because the exchange co-founder Richie Lai said, “my own personal feelings do not matter.”

Yesterday, when $5 million worth of tokens were meant to be seized, they were moved to the main wallet of the Bittrex exchange in an attempt to move them to their original owners.

But it was for nothing.

In an official announcement, the exchange said they wouldn't be returning the funds.

“The fact is, we only interpret the data on the blockchain, and in this case, the consensus of the blockchain – regardless of how it was reached – agreed that the funds from those 64 accounts be moved to the ‘community321' account.”

Bittrex’s stance is clear, the witnesses are in control of the blockchain, and they get to decide what happens with these tokens. And now, unless Bittrex changes its decision, those Steem owners won’t be getting their funds back.

Back in December 2019, Tron founder and CEO Justin Sun bought the Steemit blogging platform. In February, this year, he made a hostile takeover of the platform which led the Steem community to build its own blockchain, Hive.

At that time he worked with Huobi, Binance, and Poloniex, which he acquired in November, last year. The crypto exchanges have a lot of power given that they used the voting power gained through customer’s funds. However, Binance and Huobi later withdrew their support and Sun has been since battling with the community.

About the latest hard fork, Sun denied his or Steemit Inc.’s involvement but said: “the hive witnesses did this to them first and took all their assets.”

He is also working with law enforcement to fight against the Hive witnesses.

“As for Steemit Inc., many millions of dollars were stolen by Hive witnesses. We are working w/ law enforcement & will take actions to get our funds back! We have lots of sympathy for all Steem witnesses who have suffered the same at the hands of the Hive witnesses,” wrote Sun.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,440FansLike
2,795FollowersFollow
4,189FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Russia to Prohibit Crypto Circulation, Mining, and Ads Under New Draft Law For Digital Assets

Cryptocurrency regulations are quite tricky and up until now, only a few countries can boast of finding the right mix of existing new laws...

China’s Largest Mining Chip Maker, SMIC, Gains Regulator’s Approval On $2.8B IPO

One of China’s biggest semiconductor manufacturer, SMIC, announces plans to raise a $2.8 billion public sale IPO on the Sci-Tech Board of the...

Bitcoin Flash Crashes to $8,600 with BitMEX Shenanigans at Play Again

Bitcoin doing bitcoin things! Today, Bitcoin had yet another moment like March 12, although the price didn’t crash that low. https://twitter.com/100trillionUSD/status/1267835341987340288 Yesterday, Bitcoin jumped as high as...

AVA Labs Integrates Chainlink’s Decentralized Oracles to Improve DeFi Dapps Development

AVA blockchain, becomes the latest platform to add Chainlink, a decentralized oracle system to its platform. The integration of Chainlink to the Dapp blockchain...

Binance Korea to Improve KYC/AML Framework With Coinfirm's Compliance Solution

Binance South Korea unveiled a unique partnership with Blockchain analytics firm, Coinfirm that will help Binance remain compliant with the strict AML framework...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today