#CORE

Core event: The BTC staking on Core Chain (initiated by Satoshi Nakamoto's Core CSAC) has been frozen and is facing a class action lawsuit.

1. What happened?
· An organization called "Satoshi Nakamoto Core (CSAC)" has launched the "Core" blockchain and the concept of "Bitcoin staking," allowing users to stake their BTC on the Core chain through a cross-chain bridge to earn rewards.
· From February to March 2024, the Core team unilaterally suspended the cross-chain bridge for BTC, citing "preventing witch attacks" and "optimizing the network" as reasons. This suspension caused all users' staked BTC to be locked on the chain, making it impossible to retrieve.
2. Are you in a lawsuit?
Yes, we are in a lawsuit, and the situation is very unfavorable for the Core team.
· Class Action: In May 2024, the Southern District Court of Florida officially accepted a class action lawsuit against "Satoshi Nakamoto Core (CSAC)", its founders Brendan Blumer, Richardo Rivera, and other related entities.
· Charges: The lawsuit accuses the defendants of committing multiple illegal acts including securities fraud, telecommunications fraud, and the issuance of unregistered securities. The core argument is that Core's staking program is defined as an unregistered security, and the team is accused of illegally freezing assets after misleading users into investing funds through false advertising.
3. What is the explanation from the official and the team?
· The Core team initially claimed that the suspension of withdrawals was a temporary technical measure aimed at combating "airdrop witch attackers," and promised to reopen.
· They proposed a complex "scorecard" system that claims to determine whether a user is a "real user" based on their wallet behavior, and only "real users" will be able to retrieve assets in the future.
· However, these explanations have not gained the trust of the community, but are widely seen as an excuse for evading responsibility and centralized control. As of now, the withdrawal bridge remains closed.
4. What is the latest progress? (As of June 2024)
· The lawsuit is ongoing: the court proceedings have been initiated, which means that it has entered the legal evidence collection and debate stage. This is usually a lengthy process.
· SEC's (U.S. Securities and Exchange Commission) attention: Although no formal investigation has been announced, this incident and its "staking as a service" model have already attracted the SEC's attention. In enforcement actions against other similar projects, SEC Chairman Gary Gensler has made it clear that many staking services are essentially unregistered securities.
· Community reaction: The victim community (mainly concentrated on Telegram and X/Twitter) is filled with anger and disappointment. Many have lost hope of recovering their funds and have shifted their focus to seeking compensation through legal means.