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Bitcoin fork risk could enable replay attacks on fork-coin sales

Developers say replay protection is not expected until at least early September, and non-experts are advised to avoid moving coins during the split window.

Reported · Written up by our desk · Market Structure

CoinDesk reports that a planned Bitcoin fork tied to the controversial BIP-110 proposal could create duplicate balances on two chains, which may lead some holders to sell the forked coins for what appears to be unusually favorable value.

The outlet explains that because both chains may initially accept identical transactions, selling fork coins could enable a replay attack, where the same signed transfer is broadcast on Bitcoin, potentially spending the seller’s real bitcoin on the main chain.

CoinDesk also notes that the guidance for non-experts is to avoid moving coins until the two balances can be separated, since a replay requires a signed transaction and coins that do not move cannot be replayed.

A Bitcoin developer, Kevin Loaec, flagged the risk and said large holders could be targeted first, while doing nothing is framed as the safer course during the potential split, with replay protection not expected until at least early September.

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