Bitcoin Forum

Economy => Service Discussion => Topic started by: _biO_ on May 25, 2014, 06:54:01 PM



Title: Proof of massive fraudulent trading activity and how it has affected the price
Post by: _biO_ on May 25, 2014, 06:54:01 PM
http://willyreport.wordpress.com/

http://www.reddit.com/r/Bitcoin/comments/26g46e/the_willy_report_proof_of_massive_fraudulent/


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: beetcoin on May 25, 2014, 06:56:23 PM
i honestly think bitcon's biggest detriment is the immoral/unethical people who use it.. moreso than government. it can be used for both bad and good, just like the USD... but in a lot of ways, it's more convenient for thieves. if you steal cash from someone, it's not quite the same as bitcoin since you don't even need to reveal yourself. same goes with ransoming someone for money.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: hilariousandco on May 25, 2014, 07:12:35 PM
Just read the report. It's disappointing that the price can be manipulated in such a way. I'm inclined to believe this was all an inside job by Mark rather than hackers.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: LiteCoinGuy on May 25, 2014, 07:31:08 PM
Just read the report. It's disappointing that the price can be manipulated in such a way. I'm inclined to believe this was all an inside job by Mark rather than hackers.

https://i.imgur.com/Yplvqe1.jpg


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: haploid23 on May 25, 2014, 07:33:04 PM
Bravo to the author of this article. Very convincing indeed, but I do not have the time to go through the same analysis that the author went through, so I'll just take his word for what it is.

Assuming this to be 100% correct, then how is it still free market when you don't know if other large exchanges like btc-china, bitstamp, or btc-e are doing the same thing? The only way the mtgox order book was analyzed was because the database was leaked. You can't expect other exchanges to conveniently leak their database for you to verify.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: hilariousandco on May 25, 2014, 07:47:19 PM
Bravo to the author of this article. Very convincing indeed, but I do not have the time to go through the same analysis that the author went through, so I'll just take his word for what it is.

Assuming this to be 100% correct, then how is it still free market when you don't know if other large exchanges like btc-china, bitstamp, or btc-e are doing the same thing? The only way the mtgox order book was analyzed was because the database was leaked. You can't expect other exchanges to conveniently leak their database for you to verify.

There have been several allegations of price fixing and fraudulent transactions on some of the big exchanges. It's even more prevelant on some of the smaller ones that deal with all these crappy alts that are pumped and dumped.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 07:52:14 PM
http://willyreport.wordpress.com/

http://www.reddit.com/r/Bitcoin/comments/26g46e/the_willy_report_proof_of_massive_fraudulent/

maybe it's happening in more than one exchange.

perhaps even someone had insider knowledge of this, perhaps she was operating one of these exchanges, and threatened to publicize this information?

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 07:52:32 PM
2) The idea that Willy changed / manipulated the market price upward is definitely apparent. The price has run from the single to double digits into the triple and quadruple digits during Willy's tenure at Gox. However, in the ~4 months since Willy's departure from the market, in a post-Gox market the price has readily sustained a level that was ~50x - 100x higher than where the market price began before the price was being so viciously manipulated.

In the end, to be honest, it might have actually been the best thing that could have happened because at the expense of half a billion (in current value) of peoples money we might never have breached $32 again, or it might have taken years longer.

Fortunately, for us, we now have all them mom-and-pop B & M's - worldwide - accepting bitcoins to maintain, then further increase the exchange rate to da moon thanks to the velocity of money, read Bitcoin. Let that sink in for a sec before you recheck a map to see where the nearest outfit that accepts bitcoins is located in your neck of the woods.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 07:55:55 PM
Bravo to the author of this article. Very convincing indeed, but I do not have the time to go through the same analysis that the author went through, so I'll just take his word for what it is.

Assuming this to be 100% correct, then how is it still free market when you don't know if other large exchanges like btc-china, bitstamp, or btc-e are doing the same thing? The only way the mtgox order book was analyzed was because the database was leaked. You can't expect other exchanges to conveniently leak their database for you to verify.

There have been several allegations of price fixing and fraudulent transactions on some of the big exchanges. It's even more prevelant on some of the smaller ones that deal with all these crappy alts that are pumped and dumped.

Especially when you consider the fact that some of them exchanges and alt coins operate under one roof, Bitropolis, overseen by none other than Bitcoin's Boy Toy, Brock Pierce.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 07:58:12 PM
What are your thoughts on this in regards to the current price post-Gox? Do you agree?

Also, let me leave you with a tidbit. Instead of measuring the distances between the peaks... measure the distance between the peak and when the market finishes it's reversal and starts heading up again (e.g like this past month when we switched from bear to bull market) and tell me what you find. I think it's even more alarmingly consistent across the price since day 1.

http://geekoutlaw.com/wp-content/uploads/2012/10/See-Dead-2.jpg
"I see a pattern here!"


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Jcw188 on May 25, 2014, 08:02:12 PM
This is a little off topic but I have first hand seen price manipulated on smaller exchanges. I have no idea how they did it but I would see orders at the top of the list to be filled which were way under the last trade price. I told the admins of the sites and they acted like they had no idea and fixed the problem but it doesn't instill confidence if someone like me needs to tell them.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Jcw188 on May 25, 2014, 08:03:51 PM
2) I think Willie accelerated and pushed the envelope higher than it otherwise should have been, but remember, the other exchanges did naturally achieve these prices on their own.

How can you say other exchanges naturally achieved those prices on their own?

Agreed someone can't say that. When one exchange pushes price up or down its natural the others follow to a certain extent because of the web trade possibilities. Except when gox was crashing but that's because no one could get fiat out.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: chopstick on May 25, 2014, 08:03:58 PM
Mt Gox was 99.9% an inside job, most likely perpetrated by Mark Karpeles. He was at a minimum, majorly involved in some way.

From the blatant lies about transaction malleability, always trying to shift blame to something else, never accepting responsibility for anything.

I guess Mark thought he could get away with it. 570k bitcoins that he just straight stole from all of his customers...that represents an unbelievable amount of untold greed.. and extreme sociopathic tendencies.

It's fucking insane.

Let us hope there can be justice.

But in this world that is run by Greed..... I doubt it.



Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 08:04:15 PM
2) I think Willie accelerated and pushed the envelope higher than it otherwise should have been, but remember, the other exchanges did naturally achieve these prices on their own. Bitstamp and BTCe were both over $1000 and China actually outpaced Mt.Gox during the November bubble. Think of it like them starting a fire, they provided the kickstarter and everyone else brought the jet fuel.

If Gox fraudulently inflated the price to $1000 then of course the other ones were going to be dragged up alongside it. If they didn't, there would be huge arbitrage opportunities of buying coins everywhere else and selling them on Gox.

the disparity in prices between various exchanges has been pointed out many times, and it's one typical indicator of market rigging.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: DonnyMontana on May 25, 2014, 08:04:19 PM
2) I think Willie accelerated and pushed the envelope higher than it otherwise should have been, but remember, the other exchanges did naturally achieve these prices on their own. Bitstamp and BTCe were both over $1000 and China actually outpaced Mt.Gox during the November bubble. Think of it like them starting a fire, they provided the kickstarter and everyone else brought the jet fuel.

The exchanges are all going to be very close to each other in price (assuming of course you can get money in/out of each). Anything anything of them does to force the price up or down, is going to be mirrored in every other exchange whether they like it or not


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 08:13:36 PM
2) I think Willie accelerated and pushed the envelope higher than it otherwise should have been, but remember, the other exchanges did naturally achieve these prices on their own. Bitstamp and BTCe were both over $1000 and China actually outpaced Mt.Gox during the November bubble. Think of it like them starting a fire, they provided the kickstarter and everyone else brought the jet fuel.

The exchanges are all going to be very close to each other in price (assuming of course you can get money in/out of each). Anything anything of them does to force the price up or down, is going to be mirrored in every other exchange whether they like it or not

to a degree, but the prices need to reflect real demand.  Eventually this sort of activity results in a collapse.  In the meanwhile the market is characterized by speculators cheering the price, which is precisely what we see with BTC.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 08:21:34 PM
eventually, someone is left holding the bag. -bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: jbrnt on May 25, 2014, 08:23:38 PM
Staggering work from the writer. Thanks to OP for posting.

The Willy Report had well laid out arguments with supporting evidence. The total traded volume of each userid summed to exactly $2500000 is concrete evidence of foul play. Showing Willy being immune to network downtime is genius! It has to be an inside job!

If what this report suggests is true, the price peaks we had from previous bubbles were fabricated. Then how much is a bitcoin really worth?





Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 08:26:52 PM
Reading the article now, of which I see (via a search) that the author forgot to mention User # 44557 (44557,ttux,marc@ttux.net,$1$zRJRdGL.$VFrVkrM.g/DPp9A6eQH5D.) of that first Mt Gox dump, of which I just easily connected BTCINVEST.ORG to.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: S4VV4S on May 25, 2014, 08:29:14 PM
Mark is dumb.

But he is not that dumb.
Any hacker knows how to hide their tracks.
We know that, why shouldn't Mark?

So he wouldn't be stupid enough to leave his tracks behind, especially when your in this kind of business where security is your No. 1 concern.

I am pretty much convinced that Mark has been "played".

And unfortunately a lot of you lost a lot of cash in the process.

That is just my opinion.



Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 08:30:16 PM
2) I think Willie accelerated and pushed the envelope higher than it otherwise should have been, but remember, the other exchanges did naturally achieve these prices on their own.

How can you say other exchanges naturally achieved those prices on their own?

Agreed someone can't say that. When one exchange pushes price up or down its natural the others follow to a certain extent because of the web trade possibilities. Except when gox was crashing but that's because no one could get fiat out.

Imagine, if you will, for it's a stretch, somebody operating said minor exchanges to benefit due to the contrived arbitrage opportunities. No wonder Sunlot wanted to get their hands on Mr Gox ASAP.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: S4VV4S on May 25, 2014, 08:34:59 PM
2) I think Willie accelerated and pushed the envelope higher than it otherwise should have been, but remember, the other exchanges did naturally achieve these prices on their own.

How can you say other exchanges naturally achieved those prices on their own?

Agreed someone can't say that. When one exchange pushes price up or down its natural the others follow to a certain extent because of the web trade possibilities. Except when gox was crashing but that's because no one could get fiat out.

Imagine, if you will, for it's a stretch, somebody operating said minor exchanges to benefit due to the contrived arbitrage opportunities. No wonder Sunlot wanted to get their hands on Mr Gox ASAP.

Maybe the guys at Sunlot (Brock Pierce and his hacker friends from back at IGE) had something to do about the whole incident so they had the funds (missing BTC) to make up with the existing clients and WOW, they run the worlds biggest BTC exchange!!!!!

Just a stupid "theory" here....


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Elokane on May 25, 2014, 08:45:10 PM
The interesting question here is what percentage this fake money accounted for out of the fiat flow into the Bitcoin market. We're talking about ~half a billion fake dollars that Gox printed - how much real money entered the game during the latest price increase?



Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 08:47:02 PM
Quote from: Elokane link=topic=624877.msgt'6936577#msg6936577 date=1401050710
The interesting question here is what percentage this fake money accounted for out of the fiat flow into the Bitcoin market. We're talking about ~half a billion fake dollars that Gox printed - how much real money entered the game during the latest price increase?



have you ever played the game 'Musical Chairs'?  It's very similar, and they know when the music is going to stop.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: exocytosis on May 25, 2014, 08:48:33 PM
I guess Mark thought he could get away with it.


And he did get away with it.
Other exchange owners, upon noticing this, will surely be quite tempted to pull off a similar crime, no?
And we all know what that will do to the BTC price and real world adoption. The media will have a field day, again. Thus, the Average Joes will stay far away from anything Bitcoin-related.



Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: hystericG on May 25, 2014, 08:54:37 PM
I guess Mark thought he could get away with it.


And he did get away with it.
Other exchange owners, upon noticing this, will surely be quite tempted to pull off a similar crime, no?
And we all know what that will do to the BTC price and real world adoption. The media will have a field day, again. Thus, the Average Joes will stay far away from anything Bitcoin-related.



This. After the mtgox fiasco, many exchanges (specifically alt coins) were supposedly "hacked" and had funds "stolen".


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 09:14:58 PM
I guess Mark thought he could get away with it.


And he did get away with it.
Other exchange owners, upon noticing this, will surely be quite tempted to pull off a similar crime, no?
And we all know what that will do to the BTC price and real world adoption. The media will have a field day, again. Thus, the Average Joes will stay far away from anything Bitcoin-related.



This. After the mtgox fiasco, many exchanges (specifically alt coins) were supposedly "hacked" and had funds "stolen".

To paraphrase...

https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcQfrNfZufOVNpvzYMCJQnKMtvgTAxJDEyUr-ON7sdFPHBcvsn9P
"You're goin' need a bigger bed!"

These guys like to play with other's money, so now it's time to play with their livelihood. Game on!


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: adaseb on May 25, 2014, 09:16:40 PM
Honestly, I am not surprised they allowed this type of behaviour.

Many traders should of just used another exchange when they noticed this behaviour in December.
Shady company.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Biodom on May 25, 2014, 09:18:38 PM
That Willy article, while entertaining, is full of holes.

The main question is unanswered. Who did it and for whose benefit?

It would take an interested party ONLY 23.25 mil a month at current prices to purchase 10 coins every 10 min, which is 40% of ALL new supply.
Q: What is 23.25 mil a month for a single well established party (a state or a very large hedge fund)?
A: Almost nothing, considering that bond purchasing program is still at 45 bil/mo (down from 85 bil a mo just a few months ago).
23.25 mil is ~1/2000 of bond purchasing program, which is so miniscule that it could easily fit into a multitude of "other" items.
I am not suggesting that US was doing it, but it could have been almost any of the large states and/or funds.



Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bananas on May 25, 2014, 09:20:12 PM
i'v been warning about that for ages, everyone would just deny as if they were part of the scam probably to protect their dreams of becoming millionarie. bitcoin is not worth more than a few dollars


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 09:25:27 PM
That Willy article, while entertaining, is full of holes.

The main question is unanswered? Who did it and for whose benefit?


for whose benefit?

here's the con game:

1) insiders and major stakeholders create front companies that look like impartial exchanges.

2) they pump up the price by making it look like sales are happening with money that isnt there.

3) greedy dumb people(90% of bitcoin people) think they can make money so they get in.

4) the original group now takes their money out of the system and they are left with a temporarily valuable asset which they then sell off(to the dumb greedy people).

it's so obvious this is going on, and it's the oldest game in the book.  Now we've got 'suicides' happening among the management of some exchanges?

time to smell the coffee.

-bm

ps. NXT is it's own fully auditable exchange.  you can actually short NXT itself from within NXT.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Elokane on May 25, 2014, 09:29:44 PM
Quote from: Elokane link=topic=624877.msgt'6936577#msg6936577 date=1401050710
The interesting question here is what percentage this fake money accounted for out of the fiat flow into the Bitcoin market. We're talking about ~half a billion fake dollars that Gox printed - how much real money entered the game during the latest price increase?



have you ever played the game 'Musical Chairs'?  It's very similar, and they know when the music is going to stop.

-bm

In what way does this answer the question?


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 09:32:27 PM
Quote from: Elokane link=topic=624877.msgt'6936577#msg6936577 date=1401050710
The interesting question here is what percentage this fake money accounted for out of the fiat flow into the Bitcoin market. We're talking about ~half a billion fake dollars that Gox printed - how much real money entered the game during the latest price increase?



have you ever played the game 'Musical Chairs'?  It's very similar, and they know when the music is going to stop.

-bm

In what way does this answer the question?

I just explained it above- they create 'spin' on the market, but there are only a limited number of 'winning' seats and they make sure you're not sitting in one when the music stops.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: beetcoin on May 25, 2014, 09:32:58 PM
do you guys think if bitcoin reaches a very high market cap.. that it would still be heavily manipulated? i'd think so.. by then a lot of major players will enter the game and they will collude to swing hard.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 09:35:32 PM
Patrick Byrne had shown many times that the REAL wall st. is a scam and unless you're in on this scam you cannot raise capital.

I don't think I need to explain here how the US Dollar and the Euro also have similar biases.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 09:40:06 PM
do you guys think if bitcoin reaches a very high market cap.. that it would still be heavily manipulated? i'd think so.. by then a lot of major players will enter the game and they will collude to swing hard.

Once bitcoins starts trading quasi-legitimately, they'll just string another cable from New York to Chicago to knock off a couple nanoseconds of trading time to earn a few satoshis per each and every transaction.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Phinnaeus Gage on May 25, 2014, 09:46:27 PM
Patrick Byrne had shown many times that the REAL wall st. is a scam and unless you're in on this scam you cannot raise capital.

I don't think I need to explain here how the US Dollar and the Euro also have similar biases.

-bm


Akin to the Amish having a cottage industry set up based on their ideals to help feed their families, until a light bulb went off in some investor's head, and suggested, "Nice little brand you have going on here..."

Then it was neatly packaged to other investors, to now we have Amish-crafted products produced in China, et al.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Dalmar on May 25, 2014, 09:52:04 PM
I bet some variant of this Gox scam is still happening on Huobi or OKCoin. All the insanely big buys that pump the market globally seem to happen over there. What kind of rational person would have millions on Chinese exchanges that are in regulation violations? I will probably get back to this post once Huobi or OKCoin are exposed for continuing the Gox ponzi scheme.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: iluvpie60 on May 25, 2014, 09:54:19 PM
Bravo to the author of this article. Very convincing indeed, but I do not have the time to go through the same analysis that the author went through, so I'll just take his word for what it is.

Assuming this to be 100% correct, then how is it still free market when you don't know if other large exchanges like btc-china, bitstamp, or btc-e are doing the same thing? The only way the mtgox order book was analyzed was because the database was leaked. You can't expect other exchanges to conveniently leak their database for you to verify.

If anyone ever thought BTC was a free market just because it "seems like it" they are sadly mistaken and didn't do enough research. It is hard to spend countless hours on stuff like this though, so many complications and twists.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 09:57:14 PM
Patrick Byrne had shown many times that the REAL wall st. is a scam and unless you're in on this scam you cannot raise capital.

I don't think I need to explain here how the US Dollar and the Euro also have similar biases.

-bm


Akin to the Amish having a cottage industry set up based on their ideals to help feed their families, until a light bulb went off in some investor's head, and suggested, "Nice little brand you have going on here..."

Then it was neatly packaged to other investors, to now we have Amish-crafted products produced in China, et al.

I think they've already done that, it's called Walmart.  :)

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: C. Bergmann on May 25, 2014, 09:59:50 PM
i dont think this willy story caused the price to spike.

if the bot buys for real there must be a seller and wily owner had to pay them out in fiat. like a real trade.

if the bot buy not for real than the rate of (real) buyer and seller remains the same.

the report may be true about the activity of the bot but it plays up his impact very much. there maybe was a psychological impact, but this was rather little.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: oakpacific on May 25, 2014, 10:09:59 PM
I think there's definitely price manipulation going on, like, on this thread.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: MyPotPlantDied on May 25, 2014, 10:25:44 PM
It seems as though the Goxxing will never end!


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bananas on May 25, 2014, 10:27:49 PM
While bitcoin itself is not a scam, the market is a complete scam. Unfortunately the people who took the leadership of it are scammers.

I would never advise anyone to buy bitcoins, because i know the price is a fake bubble, a ponzi-like scam. While the scammers have been successful in keeping it going on, at some point the market will turn to reality and people may lose everything.

It is relatively easy simulate bitcoin value in non fradulent market circumstances, and it points to a very small value. Hopefully i will have the time to write an article to prove this.




Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: JorgeStolfi on May 25, 2014, 10:32:44 PM
I just posted a comment to the Willy Report page on Wordpress:
https://bitcointalk.org/index.php?topic=624901.msg6938092#msg6938092 (https://bitcointalk.org/index.php?topic=624901.msg6938092#msg6938092)


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: JorgeStolfi on May 25, 2014, 10:50:40 PM
I bet some variant of this Gox scam is still happening on Huobi or OKCoin. All the insanely big buys that pump the market globally seem to happen over there. What kind of rational person would have millions on Chinese exchanges that are in regulation violations? I will probably get back to this post once Huobi or OKCoin are exposed for continuing the Gox ponzi scheme.
A week or two ago I found a Chinese article that (through Google Translate) seemed to say that the Chinese exchanges made money from (1) interest on leveraged trading, (2) trading on insider information (e.g. about bank closures) and (3) high-frequency trading; with (2) and (3) being of course against their own clients, who were not happy once they started noticing that.

(Unfortunately I lost the link to the article, so feel free to doubt my memory and understanding.)

If true, those complaints (channeled through some consumer protection agency) may have motivated in part the "five exchanges's" agreement of early May; which may have caused the end of the Feb-Apr downtrend and the recent rally.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Dalmar on May 25, 2014, 10:59:03 PM
A week or two ago I found a Chinese article that (through Google Translate) seemed to say that the Chinese exchanges made money from (1) interest on leveraged trading, (2) trading on insider information (e.g. about bank closures) and (3) high-frequency trading; with (2) and (3) being of course against their own clients, who were not happy once they started noticing that.

(Unfortunately I lost the link to the article, so feel free to doubt my memory and understanding.)

If true, those complaints (channeled through some consumer protection agency) may have motivated in part the "five exchanges's" agreement of early May; which may have caused the end of the Feb-Apr downtrend and the recent rally.

I haven't been following Chinese bitcoin news for some time now, but I just don't understand how billions of Yuan can still enter Chinese exchanges to support current prices when the banks stopped doing business with them? Surely it can't go all through cash deposits or limited vouchers...

Something extremely shady is brewing on Chinese exchanges that will make Mt.Gox look mild in comparison.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 11:02:08 PM

Something extremely shady is brewing on Chinese exchanges that will make Mt.Gox look mild in comparison.

either that, or they are trying to make the Chinese exchanges look disreputable.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 11:05:54 PM
clearly there is a monopoly on all the exchanges except the Chinese ones.  Also, the Chinese exchanges don't have the ID requirements of others.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Cubic Earth on May 25, 2014, 11:31:57 PM
So most of the assets available to Mt. Gox, both fiat and BTC, were used to pump up the price, essentially a forcing an investment on the part of everyone who had any assets there.

I lost a pile of fiat myself, and while the alleged activities are illegal and immoral, there is a benefit to the bitcoin ecosystem.  The run up in price spurred media coverage, merchant adoption, attention and energy from thousands of developers, investment from miners etc. etc.  Although revelations of the Gox fraud have hurt countless individuals and bitcoin as a whole, its quite possible the lasting benefits of the price run up outweigh the negatives, at least for most of us.  I lost about 7% of my holdings to Gox, and I could easily believe we are 7% further ahead due to what has been described in the Willy report.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 25, 2014, 11:34:28 PM
and note another curious point- basically the American stronghold in the Asia-Pacific is *Singapore*.  Where was the exchange with the suicide CEO again?

curiouser and curiouser...

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: JorgeStolfi on May 26, 2014, 12:02:11 AM
Also, the Chinese exchanges don't have the ID requirements of others.
After the December decree, the clients of Chinese exchanges were forced to use Chinese bank accounts, either for deposit through wire transfers or to recharge the exchanges' "recharge cards".  So, in terms of ID requirements, I believe that the Chinese exchanges were effectively stricter than those outside China.

Perhaps they were less restrictive before the decree, until Nov 2013.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: ArticMine on May 26, 2014, 12:36:15 AM
I commented on this in this thread in Speculation. https://bitcointalk.org/index.php?topic=624800.0 (https://bitcointalk.org/index.php?topic=624800.0) The bottom line: Desperate short covering to meet BTC withdrawals.

Edit: Who is left holding the bag is those who lent BTC to the short seller. Who wins: Those who bought BTC during the short selling and took delivery.  


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Joshuar on May 26, 2014, 01:48:08 AM
i dont think this willy story caused the price to spike.

if the bot buys for real there must be a seller and wily owner had to pay them out in fiat. like a real trade.

if the bot buy not for real than the rate of (real) buyer and seller remains the same.

the report may be true about the activity of the bot but it plays up his impact very much. there maybe was a psychological impact, but this was rather little.

Yea, not to mention that the "ban" on Bitcoin by China toppled the price...If Willy was the cause for the huge price, then the China ban wouldn't of lowered it so much...That could only mean one thing.


That the Chinese Traders were responsible for the majority of the price increase in November, not Willy....


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: bluemeanie1 on May 26, 2014, 01:49:07 AM
Interestingly, NXT appears to be quite popular in the Asia-Pacific and Russia.

-bm


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Grinder on May 26, 2014, 09:45:31 AM
It's not like he made 4 separate posts breaking up my own post into 4 dis-coherent segments and contributing nothing intellectually to my remarks whatsoever.

Yes slightly mad, yes mildly butthurt and I'm possibly having my jimmies rustled.

No use, it's just an account building post count. That way it will look more credible when it starts or supports what ever fraud the owner is working on. There are a lot of those lately.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Aquent on May 26, 2014, 01:21:47 PM
Except that the database withdrawals and deposits have been matched to the blockchain:

http://www.reddit.com/r/mtgoxAddresses/comments/25gq8h/likely_mt_gox_transactions_identified/

So the coins are real.

Moreover, in regards to Markus, we know that MT Gox made about 300k btc in profits, we also know that MK sold about 220k btc, and we further know that MK currently hold on gox about 70k-80k btc.

So MK sold his btc - nothing wrong with that.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Grinder on May 26, 2014, 01:58:28 PM
The way I understand it, it's the fiat part of the trades that is suspected of not being real. That would explain why they've made their customers jump through hoops to withdraw fiat for so long.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: igorr on May 26, 2014, 02:48:18 PM
Mining company and exchange working together, massive fraud !

After willy we have,
https://www.youtube.com/watch?v=ob9Ak1t09Ao

And topics:
https://bitcointalk.org/index.php?topic=476535.0;topicseen
https://bitcointalk.org/index.php?topic=179586.0;topicseen


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: hdbuck on May 26, 2014, 02:49:36 PM
LMAO, like if the latest uptrend/breakout isnt manipulation too... thats some serious clockwork stuff ;D


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: _biO_ on May 26, 2014, 03:40:49 PM
A very good point:

Quote
I'm a little surprised that so many people are jumping straight to conspiracy theories in the last 48 hours following the "Willy Report". It especially surprises me because Willy follows the exact same patterns that so many people here have theorized would be done by "whales".

Imagine you are a high value trader or company. You want to enter bitcoin or increase your position. Do you really think you would simply open up a regular trading account on MtGox, put millions of dollars into your web account, and start making million dollar trades? Absolutely no way. I've worked for two large Wall Street banks, and I can tell you flat out that high value clients have access to products and services that "normal" people do not. High value clients have dedicated staff to service them, they get taken out to dinners and events, they have exceptions done for them, they simply operate outside of the normal world that you and I live in.

Willy didn't pay fees or fiat because it operated outside the purview of what a normal trader would have to do. High value clients would have direct relationships with MtGox, and would likely have special fee structure in place that they would pay to MtGox separately and at a different time than trades. Willy didn't back up trades with fiat because fiat was likely wired to MtGox separately, in bulk.
Willy only bought because these high value clients weren't looking to really "trade". They were looking to enter the market, and likely couldn't find enough early adopters off-market to facilitate their needs. So, they had to go on-market. Second Market has publicly stated that they started having issues finding off-market individuals to buy from. What then? Just stop buying? Absolutely not. They instead needed to start coming on-market. However, you can't simply start making buy orders for several millions dollars. So instead, MtGox would offer an automated API that was directly connected to their servers (just like Mark said) and could make small buys at frequent intervals so as to try to not influence the market too much and cause the price to go skyrocketing.

Willy had "??" in data fields because Willy likely facilitated several different clients at once. There is no grand conspiracy there.

Again, I'm surprised that people aren't coming to these simple conclusions, especially since this is exactly how all of us have assumed "whales" work. What we're seeing in Willy is exactly what we expected to see in whales.

Also, does anyone really think that Willy, a bot that was a small percentage of MtGox's volume, could really single-handedly incite an entire bubble when there were at least 2 or 3 other similarly sized exchanges? The truth is that Willy was just one form of high value clients entering the market on one exchange. Other exchanges likely have their own forms of "Willies" that contributed to the bubble just like it did on MtGox. And trust me, those "Willies" are no more conspiratorial than this MtGox Willy is.

http://www.reddit.com/r/Bitcoin/comments/26is61/the_simplest_explanation_is_usually_the_right_one/


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: romneymoney on May 26, 2014, 04:47:25 PM
The conclusions are quite speculative leading me to believe that there is an agenda behind this.  It's frustrating, but not surprising to see so many here seem to believe every word completely.  Just because it is well presented, doesn't make it correct necessarily.
Proof of massive fraud, not so much yet, proof of many trades made outside the standard system, yes.
How it affected the price, complete speculation, and relies on it being a "Massive Fraud" as well which is far from "proven".  It may be possible, but doesn't seem likely to me. 


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: Snail2 on May 27, 2014, 02:38:34 PM
A very good point:
.
.
.
http://www.reddit.com/r/Bitcoin/comments/26is61/the_simplest_explanation_is_usually_the_right_one/

Maybe you are right but denying the price impact of buying nearly 650K BTC in three months is nonsence. That's quite a massice buyer pressure.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: _biO_ on May 27, 2014, 07:28:49 PM
A very good point:
.
.
.
http://www.reddit.com/r/Bitcoin/comments/26is61/the_simplest_explanation_is_usually_the_right_one/

Maybe you are right but denying the price impact of buying nearly 650K BTC in three months is nonsence. That's quite a massice buyer pressure.

No one is denying that? The point is that those could have been legitimate buys.


Title: Re: Proof of massive fraudulent trading activity and how it has affected the price
Post by: RodeoX on May 27, 2014, 07:32:04 PM
For me this changes nothing because I already knew that massive manipulation was going on at the markets. Haven't we all seen this since early 2011? I tend to think it has little effect.