Author: Tier Nolan 2016-02-07 20:29:42
Published on: 2016-02-07T20:29:42+00:00
In a discussion on the Bitcoin-dev mailing list, Patrick Strateman raised concerns about custodians who fail to produce coins on both sides of a fork in response to depositor requests. He suggested that such custodians might find themselves in serious legal trouble. However, if an exchange uses an UTXO from before the fork to pay their clients, they are guaranteed to count as paying on all forks without needing to specifically pay out for each fork. Even change addresses are valid as long as the exchange doesn't accidentally double spend an output. The problem can occur when handling post-fork deposits, particularly if the exchange only receives coins on one fork. The easiest solution is for exchanges to refuse to accept deposits for a while before/after the fork happens.
Updated on: 2023-06-11T03:43:22.135887+00:00