STEEM Freezes Another $5 Million in Hive Users' Funds

By Abhimanyu Krishnan | News | 20 May 2020

Tron-owned Steem (STEEM) network has frozen another $5 million in funds linked to users of the HIVE network, with a hard fork implementing these changes to be executed on May 20. Network witnesses - which validate the Steem network - are expected to freeze 23.6 million STEEM tokens as a result of the ongoing dispute between Steem and HIVE.

64 accounts will have their funds frozen with many users losing hundreds of thousands of dollars,

As has been the case throughout the STEEM-HIVE saga, the incident has engendered a lot of discussion and criticism. Steem has opted for the hard fork as a result of the perceived threat from the HIVE community. 

Critics have suggested that this is just further proof that existing Steem users need to migrate to HIVE. The community is also asking exchanges to forego the hard fork, threatening legal action if they do so.

Vitalik Buterin also pitched in with his opinion,

Tron (TRX) and Justin Sun acquired the Steem network, along with 20% of the network’s supply, on February 14, which immediately raised concerns within the existing Steem community. A series of events which saw major exchanges involved led to the community believing that Steem was executing a hostile takeover. This led to the community executing a hard fork, which led to the new HIVE network, which has already been listed on exchanges like Binance

Sun has said that he prefers to see the relationship as a partnership, as opposed to an acquisition. He criticized the freezing of the funds in the early days of the acquisition, stating that it was a malicious action that affected not just Steem, but members of the community that disagreed with them as well.

Both Steemit and Sun are not involved in this decision, according to Sun, and legal action is being sought over the actions of HIVE witnesses.

Steem has frozen funds of former witnesses before, having executed a soft fork in early April that froze worth 5% worth of Steem’s supply. 

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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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