Slashdot Mirror
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
What do Mt Gox and slashdot have in common? They accidentally the whole thing.
Exchanges should not lose inventory!
Exchanges should not have inventory to lose!
Those who lost money from Mt. Gox were treating it as a bank, not as an exchange. It is a lot easier to mess up the operation of a bank, or to be burned by a bank failure. That is why the FDIC was created in the US, and I imagine that most countries have similar sorts of arrangements. If somebody was storing any significant amount of money at Mt. Gox then perhaps they've learned something.
Storing your bitcoins in an unregulated bitcoin-based bank is no different than storing your US dollars in an unregulated dollar-based bank.
I agree with everything you said though - exchanges shouldn't have money at risk at all if operated properly, concerns should be separated, and even if something was messed up the exchange concern should never have more money on-hand than the momentary trading volume.
.... 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!