On August 3, the cryptocurrency market was shocked by a 51% malicious attack by BSV, which was the Bitcoin Cash network (BCH) created in November 2017 forked. Although many cryptocurrency exchanges were caught off guard by this attack, Huobi did not go. Due to its advanced risk control system, Huobi predicted the possible risk of BSV being attacked a month ago and is taking measures to protect its users.

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On July 1, Huobi announced that its risk control department had found that the current computing power of the BSV backbone was unstable and suspected that someone was preparing for the next double-spending attack. Due to the upgrade of the BSV wallet, the withdrawal of BSV has been suspended. As predicted, around 11:45 pm (Singapore time) on August 3, the BSV network suffered a 51% malicious attack, resulting in 14 block reorganizations. The attack caused chaos in the mining pool, and three fork chains produced blocks at the same time. Thanks to effective measures taken in advance, Huobi successfully protected the safety of users' assets. Huobi is the first trading exchange platform to discover BSV risks and take control measures, one month before Coinbase. This is due to its eight-year security operation, built on the world's leading risk control equipment and capabilities, during this period it has maintained the best exchange security record. "On July 1, we were concerned about the BSV mainnet anomaly and we suspected that someone was preparing for an attack," said Ciara Sun, vice president, Huobi Global Market. "As a result, we suspended access to BSV. We predicted this through our risk control model. The successful prediction of this attack benefited from our 8 years of risk control experience. "It is not the first time that the risk system of Huobi predicts 51% attacks. In December 2020, the old Aeternity (AE) public chain, known as the European Ethereum, suffered 51% attacks and lost more than With 39 million tokens worth more than 5 million U.S. dollars, many top exchanges suffered heavy losses, but Huobi did not. As in the case of BSV, Huobi was the first exchange to discover these anomalies and deploy risk mitigation measures before the attack.

Insights from experience

Huobi Group has a service license of digital assets in many countries and regions around the world. It is one of the global leading digital assets negotiation platforms that provide transactions and related services for hundreds of digital assets. The long pedigree of Huobi, the global footprint, security and professionalism, created a place of selection for cryptographic merchants around the world. As a result, a large volume of more than $ 1.2 billion volumes has been attracted daily through different citizen assets of 375. This combination of this volume, experience and risk approach is a business rock and has sailed through the BSV attack this week.

Manage filing costs

Small business owners do not have the tax preparation budget of large companies. Unfortunately, the cost of tax preparation for multi-state filings can be high. Once you determine in which state you should apply, you may find that your share rate is zero, so you have no taxable income. Therefore, you must decide whether to submit. If you try to comply with all state laws that each state expects, the cost may be higher than the potential fine for not submitting an application.

When in doubt, collect sales taxes

If you can have a connection, then you should levy sales tax. Remember, sales tax usually does not affect your sales. There is no way to go back to your customers and ask them to pay sales tax for past purchases. When not levying sales tax, the government will assume that sales tax is built-in. If you sell a product with a small profit, this may mean the difference between making money and losing money.

Don’t believe the gossip

Ideas and gossip about setting up businesses in State X and State Y always circulate in the corporate world. For example, some Californians mistakenly believe that a Wyoming LLC can save them taxes. Unless you have your own business on WY, this strategy will only allow you to pay the additional application fee paid to WY. If you are a California resident, regardless of the state in which your business is registered, you will pay taxes on the income it generates. So are there situations where businesses can benefit from multi-state tax planning? The short answer is yes, but only if your business is taxed as a Type C corporation with offices and employees in different states. For other small business owners who benefit from tax flows, multi-state taxes will mean higher administrative costs and potentially more taxes. Pay attention to where you may have a link, and make sure to pass the information to your tax preparer or CPA to ensure compliance.