Coinbase Ends Support for Bitcoin SV Amid Craig Wright Controversy
In the cryptocurrency sphere, Bitcoin has birthed several derivative ventures, notably Bitcoin Cash, which further splintered into Bitcoin SV in November 2018.
Led by Craig Wright, Bitcoin SV sought to evolve Bitcoin’s core concept by significantly increasing its block size to 4GB, surpassing Bitcoin’s block capacity.
Wright’s persistent claims of being Bitcoin’s enigmatic creator, Satoshi Nakamoto, have sparked legal disputes, clouding Bitcoin SV’s reputation. Coinbase recently announced the cessation of support for Bitcoin SV, urging users to withdraw their holdings before January 9, 2024, after which unclaimed funds will be liquidated and converted to another cryptocurrency of similar value for affected users.
Coinbase cautioned about potential losses from forced liquidation, citing market fluctuations and transaction fees, absolving itself of compensating users for these losses. The exchange also highlighted potential tax implications solely the users’ responsibility.
This decision follows Coinbase’s earlier halt of BSV trading after a disruptive 51% attack in August 2021. Despite allowing users to keep their Bitcoin SV funds in their exchange wallets, the recent announcement signals a complete withdrawal of support for the token.
Coinbase’s move coincides with ongoing legal battles involving Craig Wright, who faces a legal challenge brought by the Crypto Open Patent Alliance (COPA) aiming to disprove his claims of being Satoshi Nakamoto.
COPA alleges that Wright’s assertions rest on forged documents, a claim supported by a UK High Court ruling allowing the challenge of 50 additional documents. However, the court clarified that Wright can defend the legitimacy of these documents in a trial set for January 2024.