Bitcoin price crashed following Bitcoin community clashes over censorship

On Dec 8, 2023

Samourai Wallet claimed Jack Dorsey & Luke Dashjr were involved in the Bitcoin transactions censorship activities.

Bitcoin (BTC), the top crypto asset by market cap, entered the first phase of a bull run and that is visible clearly in the rapid increment in the trade price of BTC. In the last 24 hours, the trade price of Bitcoin plunged strangely because simultaneously the other flagship crypto assets showed a rally of 4-10%.

Bitcoin price crashed following Bitcoin community clashes over censorship 1

Many people noted that the recent dump in the trade price of Bitcoin took place because of a controversy between the decentralised Bitcoin mining pool OCEAN and the Non-custodial Bitcoin wallet Samourai Wallet.

On 7 Dec 2023, The official X (formerly Twitter) account of Samourai Wallet alleged that former Twitter CEO & Bitcoin proponent Jack Dorsey and Bitcoin core developer Luke Dashjr were trying to censor Bitcoin transactions & also they allegedly used coinjoin technique.

We can confirm that @ocean_mining has enacted a policy of censoring Whirlpool coinjoin transactions and BIP47 notification transactions as of Dec 6, 2023

This is a regrettable action by the operators @jack and @LukeDashjr and far surpasses any hostile action we have seen before
— Samourai Wallet (@SamouraiWallet) December 7, 2023

Coinjoin is a privacy-enhancing technique used in Bitcoin. In this method, a person combines Bitcoin transactions of multiple people in a single transaction, to make the transaction traces very difficult to public.

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Luke responded against these allegations and said that there might be some hidden software bug issue with Samourai wallet software.

This is a bug in your software, not an intentional policy on our end. Why are you exceeding the standard 42 byte datacarrier size?

What is this data even for? I've looked at trying to workaround it, but can't find any technical details.

In any case, you should fix it on your…
— Luke Dashjr (@LukeDashjr) December 7, 2023

Samourai wallet denies the software bug theory and further suggested all the Bitcoin miners go with other Bitcoin mining pools to keep the Bitcoin transactions related censorship activities away.

We have further self defensive weapons at our disposal that may be deployed if Ocean obtains significant hash power.

We humbly ask that miners point their hashpower to any other pool to send a strong market signal to the would be censors.

Don't let them get away with this.
— Samourai Wallet (@SamouraiWallet) December 7, 2023

Mr Luke indirectly urged all the Bitcoin miners to shift to Bitcoin mining via Ocean Pool, to make more profit & better the future of Bitcoin.

Miners on OCEAN are making far more profit than those on other pools

Shareholders should start asking their mining enterprises why they're choosing less profitable pools that also harm Bitcoin
— Luke Dashjr (@LukeDashjr) December 6, 2023

So far no response has come from Block CEO Jack Dorsey, who is a popular Bitcoin proponent. In late 2021, Dorsey stepped down from the Twitter CEO role, in order to give more time to Blockchain-related development via his company Block (formerly Square).