[TOOL] OutputSpender: spend outputs from Counterparty fake multisig transactions

[nutildah]

OutputSpender

spend hidden outputs created by Counterparty fake multisig transactions

https://github.com/nutildah/OutputSpender

• Scan any address for unspent fake multisig outputs
• Build, sign & broadcast custom Bitcoin transactions
• Spend any fake multisig output from Dec 2014 - present
• Supports offline signing
• Free to use
• Windows only

About a year ago I was inspired to figure out how to identify and spend 'hidden' outputs created in fake multisig transactions for the Counterparty protocol. Counterparty has used this method of storing data for a long time. An issue is the protocol by design does not track the Bitcoin in these outputs; it only reads the Counterparty-specific data in the transaction. Interestingly, no block explorers or wallet software knows that this Bitcoin actually belongs to the sender, and thus it is never calculated in any wallet balances.

Now that the price of Bitcoin has increased exponentially over the last 12 years, the 7800 sats per fake multisig output (example tx) could add up to hundreds or thousands of dollars for anyone who performed a lot of Counterparty transactions over the years. This utility allows people to find and spend these outputs by building and broadcasting their own Bitcoin transactions.

OutputSpender Procedure:

     1. Scan a Bitcoin address for unspent fake multisig outputs.
     2. Select a transaction ID from the list to open on mempool.space.
     3. Copy & paste the transaction ID, VOUT #, Output Amount & ScriptPubKey (HEX) for each input.
     4. Build the transaction.
     5. Broadcast the transaction.

Special Considerations

• You will need the private key for the address from which you are spending.
• Best security practices involve emptying an address first before running this application, since you are exposing your private key.
• You can also construct transactions offline and broadcast them later.
• Counterparty STAMPS creators will want to cross-reference transaction IDs with their STAMPS issuances if they want to avoid spending these outputs.

You can find more detailed instructions in the GitHub README. Feel free to ask if you have any questions!

[nutildah]

[reserved for updates]

[Pmalek]

Now I am going to sound like a total noob, but I don't care. Did I have to have engaged with the Counterparty protocol in the past in some way to receive these fake multisig outputs or could they have been created and sent to me in some other way? With "normal" use of the Bitcoin blockchain? These were pre-NFT times. Are there certain types of transactions that are more likely to have fake multisig outputs than others?

[nutildah]

Now I am going to sound like a total noob, but I don't care. Did I have to have engaged with the Counterparty protocol in the past in some way to receive these fake multisig outputs or could they have been created and sent to me in some other way?

Good question. The answer is "Yes," you need to have made Counterparty transactions for the address to have any fake multisig outputs. These aren't outputs that are incidentally created during the course of 'normal' bitcoin use.

Are there certain types of transactions that are more likely to have fake multisig outputs than others?

Specifically, this transaction method is used for storing more data in a Counterparty transaction than OP_RETURN will allow, which is what it normally uses. Its used for issuing assets with long description lengths (ala Stamps), conducting multi-sends, or broadcasting long strings of text.