The controversy surrounding Justin Sun’s management of the Steem network (STEEM) continues to grow; Steem is moving to freeze another $5 million in tokens in the possession of Steemit witnesses and stakeholders.
Network validators associated with Sun, called „witnesses,“ have sanctioned the decision to freeze 23.6 million STEEM tokens, accusing account holders of representing an existential threat to the Steem network.
The largest private investment bank in Latin America issues real estate tokens in Tezos
However, critics claim that the hard bifurcation vindictively punishes users who opposed the Tron founder’s takeover and supported the March hard bifurcation of Hive, a Bitcoin Champion – Bitcoin Code – The News Spy – Crypto Trader – Bitcoin Trader that froze the founder’s reward that Sun acquired with Steemit, excluding him from the new network.
The hard bifurcation follows a soft bifurcation that froze the 17.6 million STEEMs held by former witnesses last month.
The non-custodial bridge from Bitcoin to Ethereum was closed after two days
Steem moves to freeze $5 million in user funds
The code of the programmed fork includes the names of 64 users whose accounts and funds will be frozen with the next update.
In an interview with Joind, Steem’s current witness, Triple A, accused the holders of the accounts being forked of „spreading false news,“ „writing offensive and useless spam comments,“ and „publicly attacking users, collecting personal information, and threatening murder.
Crypt traders are making long positions with Ethereum (and not much more than that)
But ‚pharesim2‘, the Twitter and Steem user who will soon be sanctioned, claimed that the witnesses „are accusing us all of criminal activity, without presenting any evidence“. He added: „My participation is currently worth more than EUR 80,000. I bought 500,000 last year“.
„‚They Call Me Dan‘ also tweeted that the upgrade will seize USD 600,000 of their funds.
Affected users file a pending class action lawsuit
In response to the bifurcation, the users it addresses ask the crypto-currency community to send a letter to the exchanges urging them not to implement the hard bifurcation proposed by Steem, threatening civil liability in case they support the bifurcation.
In response to the controversy, Ethereum (ETH) founder Vitalik Buterin tweeted, „Shouldn’t all Steem users be moving to Hive by now?
Justin Sun responded to Buterin’s tweet with „Shouldn’t all users of #Ethereum be moving to #TRON by now?“
Speaking at Virtual Blockchain Week earlier this month, Sun criticized Hive for moving to freeze its funds, accusing the project of theft.