CoinGeek: Asset Seizure Was Possible With Original Bitcoin

Submitted by Aaron Goldstein on

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Aaron Goldstein

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CoinGeek: Asset Seizure Was Possible With Original Bitcoin

Joshua Henslee of CoinGeek claims that many in the digital currency space believe asset seizure and freezing to be technically impossible courtesy of a "decentralized" system. 

The reality is that the creator, Dr. Craig Wright, had implemented puzzle pieces for this to be possible from the early stages of the network, Henslee claims.

He points to a time in 2010 when users discovered they could actually “steal” sombody else's Bitcoin by simply prepending any locked script with OP_TRUE OP_RETURN.

Henslee writes:

Since the opcode OP_RETURN halts execution of script (like a return function in any programming language), it would return the previous value on the stack, OP_TRUE, which returns a true condition allowing spending of anyone’s coins, regardless of their spending conditions.

Even if the OP_TRUE OP_RETURN bug was technically possible on Bitcoin today, nodes would likely reject these scripts as they would essentially be guilty of facilitating crime, Henslee observes.

Re-implementation of this "bug" might result in miners having the ability to freeze and return assets despite the “experts” claiming it is impossible.

If the solution implemented is not making OP_TRUE OP_RETURN scripts possible, then another is an agreement by nodes via a notarized contract. Nodes can now receive instructions from court orders to freeze assets or re-assign coins. This implementation by the Bitcoin Association echoes  Wright’s sentiments in February 2022, doubling-down on the concept that network consensus should be achieved outside the technical capabilities of the blockchain.

- Aaron Goldstein, Gambling911.com

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