A Proposal, Not a Heist: Unpacking the Bitcoin Plan to Reassign Satoshi-Linked Coins

Paul Sztorc, CEO of LayerTwo Labs, has been at the center of controversy surrounding the proposed eCash Bitcoin fork, scheduled for August. The fork would copy Bitcoin's history up to a certain point, giving BTC holders an equivalent balance on the new network. However, the plan to allocate 600,000 eCash to addresses linked to Satoshi Nakamoto and redirect the remaining 500,000 eCash to investors has sparked debate. Sztorc insists he is not trying to move Satoshi's bitcoin, but critics argue that rewriting forked-chain balances at addresses a user does not control sets a bad precedent. The dispute has turned into a property-rights fight, with some arguing that any proposal that seeks to evolve or improve Bitcoin by violating the property rights of the creator is a serious ethical misstep. The timing of the proposal has made the fight sharper, as Bitcoiners have been arguing over proposals to freeze or restrict old quantum-vulnerable coins, including addresses believed to belong to Satoshi. The eCash fight is landing in a market already primed to treat any intervention around Satoshi-linked coins as radioactive, with some arguing that even proposals framed as protective measures risk damaging Bitcoin's core monetary promise if they create a precedent for treating dormant coins differently. Sztorc has previously spent years pushing Drivechains, a proposal that would let developers add sidechains to Bitcoin, but the Bitcoin Core community has not agreed to adopt it. The eCash fork now functions as both an exit plan and pressure tactic, with Sztorc saying he would call it off if Bitcoin activates those proposals before August.