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Author Topic: Exchange "hacks"  (Read 520 times)
Eamorr
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January 16, 2015, 11:44:26 AM
 #1

What is the story with all these "hacks"?

Surely the time to "hack" is not when the price is on the floor?

It's no coincidence, in my view, that the frequency of these "hacks" correlates strongly with low prices and/or market panic.

The biggest hackers are the exchange insiders. If this was a regulated industry, they would face massive fines, loss of livelihood and jail. There is no such penalties for these offshore operators. There's the added bonus that stolen Bitcoin can be almost impossible to trace.
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Ultros
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January 16, 2015, 11:54:30 AM
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Surely the time to "hack" is not when the price is on the floor?

Depends. What if it's not a matter of price but volume? During a crash, a lot of money is being put in exchanges for panic selling/bottom catching/swing trading/arbitrages.
Eamorr
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January 16, 2015, 12:09:00 PM
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Surely the time to "hack" is not when the price is on the floor?

Depends. What if it's not a matter of price but volume? During a crash, a lot of money is being put in exchanges for panic selling/bottom catching/swing trading/arbitrages.

You mean like a fractional reserve -type situation? Lol.
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January 16, 2015, 01:18:56 PM
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I think how that is accomplished is fairly easy. The backdoor or security vulnerability is left open on purpose by operators, and when the time is right is exploited by the persons who left it there in the first place.
The result: If done right there is plausible deny ability if the "hacker" ever becomes a suspect in any criminal investigation.

That goes for the more sophisticated scams, lesser ones probably just cut and run..

First they ignore you, then they laugh at you, then they keep laughing, then they start choking on their laughter, and then they go and catch their breath. Then they start laughing even more.
Eamorr
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January 16, 2015, 01:39:41 PM
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I think how that is accomplished is fairly easy. The backdoor or security vulnerability is left open on purpose by operators, and when the time is right is exploited by the persons who left it there in the first place.
The result: If done right there is plausible deny ability if the "hacker" ever becomes a suspect in any criminal investigation.

That goes for the more sophisticated scams, lesser ones probably just cut and run..

Yes, "plausible deniability" is a good phrase.

Play dumb and pretend the hackers were really "sophisticated" (usually located in some far off place like "Eastern Europe" or "North Korea" or whatever you're having yourself).
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January 16, 2015, 01:44:36 PM
 #6

bitstamp tried like karpeles did with silk road bust to pump the price.

they failed.
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