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Altcoin Bitcoin Private confirms the premining of 2 million coins secretly

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Altcoin Bitcoin Private’s (BTCP) development team confirms the creation of 2.04 million units of BTCP “that were
never intended to exist on the blockchain,” as per a statement released officially on December 24.

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In a report published by Coin Metrics on December 23 reveals that while importing the Bitcoin (BTC) chain data an additional units of 2.04 million (around $3.9 million at press time) units of BTCP were mined secretly. According to the white paper of BTCP, the total supply of the coin is limited to 20.4 million coins, whereas the BTCP’s secret premining bought this number to around 22.6 million.

Upon receiving the report BTCP core team said it “immediately launched an investigation to ascertain whether or not the alleged findings of an additional amount of BTCP coins were true.”

Analyzing with the audit report the team official confirms the Coin Metrics’ findings were “mathematically accurate” adding, “However, at this time, the source, purpose, and recipient of this exploit is currently unknown to the Bitcoin Private Contribution Team.”

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Going further the statement outlines the lines of events concerning the issue, revealing the involvement of a bounty posted for the particular issue, which ultimately got accepted by a developer, who was “promoted to a contributor on GitHub, allowing him to merge pull request,” after becoming a BTCP developer.

Following this the developer reportedly completed the issue, merging their own code and got the reward. In the process, the BTCP team found that one line is missing in the code which “allow[ed] the fork to be exploited due to the nodes not properly verifying the falsified fork blocks.” After collecting the reward the developer left the project of BTCP.

As it happened, the treat actor as reported exploited the bug and created more than 2 million coins during the announced fork mine. The statement says, “as the code was open source, and the fork-mine was announced on Twitter, anyone with sufficient blockchain development knowledge could have exploited it.”

But the state of those coins is not confirmed by the BTCP team as they are unsure about what happened to those coins as it states,

“this particular exploit could only be taken advantage of during the fork mine, which already occurred earlier this year. Therefore, it is impossible for this particular bug to exploit to occur again, nor can it be further exploited.”

Along with it, the team denies any prior knowledge of this incident. The statement also reads that the development team is in talks with the major crypto exchange HitBTC regarding it.

Last September, Bitcoin Core released an update after the detection of the vulnerability in the software. This vulnerability is reported could crash the older version of the Bitcoin Core if attempted to process a block transaction that tries to transact with the same amount twice.

By the press time, BTCO is trading around $1.80 which is down nearly 2.3%.

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