Chinese cryptographic currency exchanges are accused of colluding in an attempt to take control of the EOS Blockchain platform. Parent company Block.One raised a record $4 billion through an initial coin offering (ICO) in May, before launching the platform in June. Since then there have been several problems, reports include Silicon Angle.

For example, in June, an arbitration decision forced blockchain participants not to process transactions from 27 different accounts that had been attacked by hackers. However, participants claimed that this decision went against the idea of a decentralized blockchain. Also, the process used to make the decision would be “haphazard and unprofessional”.

Buying votes

In September, a report was circulated on Chinese social media which shows that “conspiracy, mutual voting and payments” are common among producers of EOS blocks. The document would also show that the Huobi cryptographic currency trading company, together with “other powerful block makers”, deliberately vote for each other, “in an attempt to maintain status and guaranteed passive income”. In addition, Huobi is said to have received EOS cryptographic currency in exchange for his votes.

Huobi denies all accusations. Block.One-CEO Brendan Blumer said that the company “is aware of a number of unverified claims about deviations by block creators, and the denials of those claims”.

The EOS Alliance, which is to manage the EOS Blockchain, did not deny the accusation. Instead, they assured their members that if manipulation existed, it “may not directly affect the public perception and corporate reputation of the EOS mainnet”.

“The EOS Alliance recognises and respects the concerns of the EOS community about buying votes,” said the Alliance. Furthermore, the organization says that if it does occur, it will be tackled, but without “brand damaging drama and witch-hunting”.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.