EOS Poised to Make Recovery Following Controversial Emergency Account Freezes Over Weekend

recovery concept

The EOSIO blockchain’s native token, EOS, has rebounded along with the rest of the cryptocurrency market today as it looks to shake off more controversy over the weekend.

On June 17, this Sunday passed, the top 21 EOS block producers (BPs) collectively decided to lock seven accounts that they deemed had been subject to phishing attacks, specifically those accounts with private keys that were confirmed compromised.

It is understood that the specifics were generated through data gathered by the EOS911 community initiative, which allows for victims of phishing attacks to register the compromised private keys.

The decision to lock affected accounts came at a sensitive time in the EOS timeline: the EOS Mainnet had launched, which meant all tokens controlled by stolen private keys could be transferred after the 72 hour unstaking period directly following the launch. If this happened, there could be no recovery of tokens stolen.

The act of locking the affected accounts has been the source of some controversy within the EOS community. While just how decentralized the EOS blockchain is may be debatable, it is the first blockchain to be governed by a structure defined by a Constitution, much like the structure of the American government.

A Steemit post by EOS New York, a top 21 block producer, detailed the politics of the decision to lock the accounts, particularly in the transitional period in which the EOS Mainnet was switched on.

We initially received a preliminary notice from the EOS Core Arbitration Forum (ECAF) that they were likely to issue an emergency order to freeze certain accounts affected by the scams. But this didn’t happen. Despite ECAF’s initial notice that they would opine on the matter, they instead responded to our request with the stance that they did not have the authority to act during this gray period wherein only an interim Constitution existed. When we learned the ECAF would not change its position, it was clear that the judiciary was not available to the community and these affected community members at this time. We now found ourselves thrust into a position of acting as both executive and judiciary, which we initially resisted.” the statement reads.

The controversy comes as it appears the Block Producers have unanimously acted outside of their jurisdiction, manipulating the blockchain without prior approval from the ECAF – who frustratingly would not give consent with only an interim Constitution in play.

Whether the locking of accounts is to be seen as justified is yet to be determined. EOS New York have requested a formal response from the ECAF, due today, and in an act of good faith, they have also submitted claims against themselves and the other top block producers for the decisions taken without consent of the ECAF.

We will continue updating this story as it develops. EOS New York have declared that if no ruling is handed down today, then they will remove the freeze and have added that no further ‘extra-judicial’ action will be undertaken.

Image From Shutterstock

Related posts