By CCN: Binance CEO Changpeng Zhao discussed the idea of potentially reorganizing the Bitcoin blockchain. In this vision, the 7,000 BTC recently stolen from the cryptocurrency exchange would be redistributed to miners in the form of fees.
A coordinated effort with miners, within a specific time frame, could theoretically make it possible to empty the balances of the Binance hackers.
Binance CEO: “It Wasn’t My Idea.”
@cz_binance if you reveal your private keys for the hacked coins (or a subset of them) you can decentralized-ly at zero cost to you, coordinate a reorg to undo the theft.
— Jeremy Rubin (@JeremyRubin) May 8, 2019
James Prestwich also chimed in:
Pretty much this. You can sign transactions bribing miners with the UTXOs that have been consumed. If miners reorg to that chain, the theft will be undone. You could even offer something like 20% of the value to minershttps://t.co/YrLkGeYxgy
— James Prestwich (@_prestwich) May 8, 2019
BitMEX Research pointed out that this idea had been floated before, in 2016, when Bitfinex was hacked to the tune of 120,000 BTC. The genesis of the concept posits that the financial rewards of reorganizing the chain to thwart the attackers were much higher than the incentives to maintain the blockchain as it was.
“In this case, Bitfinex could promise to pay the miners, say, 25 BTC per block for however many blocks it takes to reorg out the theft transactions and replace them with a spend aggregating the funds off of BitGo and into cold storage. As long as this is less than a few thousand blocks, it makes economic sense for everyone involved, simply because of the enormous size of the theft. […] To be absolutely clear I hope that this doesn’t happen. If it does, I’m not sure what value proposition bitcoin would have left. Uncensorable, nonpolitical money is what bitcoin is…