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Sifting Mt. Gox's Logs Reveals Suspicious Trading Patterns
This analysis of trading logs from the Mt. Gox Bitcoin exchange analyzes a subset of the transactions that took place there prior to the exchange's collapse, and makes the case that two bots (the writer calls them "Willy," and "Markus") were making suspicious transactions which may have been used to intentionally manipulate the trading price, and which can explain the loss of Bitcoin inventory on which the exchange's failure was blamed.
The author of the analysis says "[T]here is more than plenty of evidence to suspect that what happened at Mt. Gox may have been an inside job. What I hope to achieve by releasing this analysis into the wild is for the public to learn the truth behind what happened at Mt. Gox, how it affected the Bitcoin price, and hopefully for the individuals responsible for the massive fraud that occurred at Mt. Gox to be put to justice. Although the evidence shown in this report is far from conclusive, it can hopefully spur a more rigorous investigation into Mt. Gox’s accounting data, both by the public (using the leaked data) and the authorities (forensic investigation on the actual data)."
First we hear how BitCoin rules because it side steps those evil governments and their rules and regulations. Now that people have lost money due to dishonest behavior (which was 100% predictable given the nature of BitCoin) people are howling for the "individuals responsible for the massive fraud that occurred at Mt. Gox to be put to justice".
HAHAHAHAHAHAHAHA
What buffoons. First its "The government is evil! We rule because we are outside their jurisdiction". Then when the completely obvious consequence of having an unregulated and anonymous system for monetary transactions happens its "Hey, what the ???? Someone has stolen our money! Quick! Call the police! Government, come save us!".
HAHAHAHAHAHAHAHAHA
A virtual Internet-based currency is subject to electronic flim-flammery? Color me shocked.
I want to delete my account but Slashdot doesn't allow it.
No matter what the price is, a correctly operated exchange should pair buyers with sellers, and only perform the transactions when the buyers offer more than the sellers demand (exchange gets the difference). That's what it means to be an exchange: you facilitate trades. Some price manipulation shouldn't hurt them: it's just more trades and thus more profit.
If you want to add some extra damping there and capture some profits from the changing prices, you can either screw with the profit margin size dynamically, or you can become a user of your own exchange (become an investor in multiple currencies, and shift between them on your own exchange). Investing like that is a separate thing, and if they mixed that up with the operating of the exchange part, then they really screwed up: if you botch separation on concerns, one screw up wrecks everything. Well, we know they really screwed up in lots of ways, and with no proper separation of concerns, they totally wrecked everything in lots of ways. No partial failure support + fail horribly at something = oops, no more company.
The less people will care. The less people will remember their lost money, and the less people will be able to do about it. I think we're close to that point where those who lost have accepted it and those who followed the story stopped, no lessons learned, look at all the thriving bitcoin exchanges & online wallets. Like school shootings, we're about over it til the next big one hits.
If only they would have made it simpler by either stealing a lot more, or a lot less.
Look where all this talking got us, baby.
What do Mt Gox and slashdot have in common? They accidentally the whole thing.
Well-done article. Read it top to bottom. Congrats.
Religous speak to God. Insane are spoken to by God. When all shut up, one can finally hear Shostakovich in peace
It wasn't foresight; same as for the EPA, labor laws, OSHA, ...
Wow. For you Tea Baggists - oh, I'm sorry, "Libertarians" - it always comes back to the EPA and OSHA...
He isn't saying there shouldn't be an EPA or OSHA, he's saying that people had problems then came up with the regulatory solution (ie creating the EPA). WTF are you responding to? I don't even think the GP is a tea partier.
PS I'm a Democrat, not trusting the FED (which is a rational position if you know its history) isn't the same as being a Tea Party member. Its just one issue out of many and one that quiet a few Occupiers would agree with (well the ones that know what the FED is anyway). Now go troll elsewhere.
"Those that start by burning books, will end by burning men."
BitCoin is not "money".
Even if true, bitcoin would still be a very useful payment system. It may not replace the US Dollar but it may very well replace PayPal.
By definition, BitCoin is money. Troll more elsewhere. "any article or substance used as a medium of exchange, measure of wealth, or means of payment, as checks on demand deposit or cowrie."
It currently fails as a stable measure of wealth (alternatively described as a store of value), its a bit too volatile. Although it is currently a good medium of exchange.
As evidence for the proceeding notice the growing popularity of exchange merchant services where merchants who accepts bitcoins as payments (from the customer's perspective) never in fact sees or "touches" a bitcoin. They specify a price to the echange in fiat, the exchange provides the equivalent price in bitcoins and provides a payment address. The bitcoin payment in fact goes to the exchange which immediately converts to fiat and credits/pays the merchant.
I think the US government is genuinely confused.
I think the US government doesn't care. Its the Japanese government that cares, Mt Gox is in Japan. :-)
The same applies to real gold, precious gems, and many works of art.
.... Do you remember those hundreds of billions of dollars of taxpayers money, Obama and his team of banksters handed over to commercial privately held banks?
Not quite. Not quite.
Personally, I recall the $700 billion dollar TARP program advocated by Henry Paulson and signed into law by George W. Bush. Can you provide us with links describing the Obama bailout program you refer to? (Don't worry, I'm not holding my breath).
I also recall Obama announcing that the banks had paid back their loans with interest, such that the government made a profit on TARP.
In summary, you are entitled to your own opinion, but not to your own facts!
--- Often in error; never in doubt!
transactions which may have been used to intentionally manipulate the trading price
Isn't that exactly what trading is all about?
The difference between banks and MTGox is that while banks also use fraction reserve, the full liabilities are backed by assets in the form of loans they have handed out, and security on the assets of the borrowers such as property. At the time of the financial crisis, those assets and collateral were not sufficient to cover the fractional reserve liabilities, but at least they had something, unlike MTGox which had nothing to back the fractional reserve liabilities.
Obama effectively wrote checks for over $2 trillion in the bailout mess.
As if Democratic-flavored fuck-ups taste any better than Republican ones. It's practically funny watching two groups argue while both of them shove shit in their mouths purporting theirs tastes far better.
When we can start talking about how the next asshole-in-charge won't write even more checks instead of pointing fingers, then perhaps I'll start giving a shit as to who's name is on the signature line.
There is no question that the financial structure of the United States, and mostly likely the world as a result, was in danger in the 2008 time frame. President Bush and Secretary Poulson took the responsible course of action, deflected those whose advice was to let it all burn on principle, put together a bailout plan, invited the presidential candidates to review it, and got it signed into law. IMHO the only competent thing that W did during his entire Presidency.
What President Obama can be held responsible for is not following up TARP with detailed investigations into violations of civil and criminal law, including prosecutions where appropriate. Particularly investigations into the utterly illegal shadow mortgage documentation "registry" that the financial industry apparently created around 2000. This was the first major financial crisis in the history of the United States that did not generate a strong investigatory response. There are undoubtedly reasons why that didn't happen, reasons noble, neutral, and craven, but the lack of _any_ investigation or prosecution is an utter failure of President Obama and his Administration.
sPh
And Congress. Both the Senate and the House could have done their own hearings and upon finding wrong doing formally report it to the DoJ and/or SEC. demanding justice.
putting the 'B' in LGBTQ+