Poll: comparing to current bull market: what caused 2013's March and November bitcoin price booms to be so steep and fast?
I'm writing a new retrospective article on the potential impact the so called MtGox hidden trading bot had on historical price movements. Most importantly I seek to contrast the current, very progressive and stable, bull market to that/those of 2013 - which were sharp and fast. My argument here would suggest that MtGox's secret bot may well be behind this difference. As there is much uncertainty about the events & activities leading up to MtGox's demise, it's only best to gauge the community insight. Please answer the Twitter poll on the potential root-causes / differences between the 2013 and our current bull market. Alternative arguments are more than welcome in the comments.
Tether is the new MTGOX Willy bot. Any exchange that has Tethers is going to become insolvent and make you lose money, even if you don't own Tethers.
I have seen it said a few times recently, but I want to say this again. MTGOX manipulated prices. They were a "trusted" exchange that was at the time the biggest exchange. All caution was thrown to the wind when people used MTGOX because they saw arbitrage opportunities. Many of you may not have been around for this, but on MTGOX the price was regularly 100 USD or 200 USD higher than any other exchange for the Bitcoin price. They(the exchange itself) used a bot called Willy to manipulate the price upwards in their favor. The bot was credited with "money" that they "printed or generated" on their internal site, which nobody else could see. What is the difference between Willy bot and Tether? We can see Tether being generated. They are doing it out in the open and it "looks" above board. From the countless threads I have been reading here, it is clear that everytime Tether is printed and sent to an exchange(or 2 or 3 exchanges) the price of cryptocurrencies go up. This is unsustainable. MTGOX was unsustainable. I caution every single person to not have ANY of your funds on any exchange that has UDST on it. You might be thinking(incorrectly) that you are safe keeping money on an exchange, because hey "I don't have any of it in Tether" I only trade in the pairs of BTC or ETH!". Well, you would be wrong. When an exchange goes under what have they historically done? They issue tokens. When the FBI came in and raided BTC-E, what happened? EVERYONE who had coins was affected. The FBI took somewhere around 1/3 of all coins on the exchange. The exchange didn't give anyone 100% of their funds, instead they let you withdraw 65% of your funds at 100% and gave you tokens for the remaining 35%. The token price overtime is bought back and if you hold it until the end they promise to pay you back at 100%(I have 1 Ether token tied up in BTC-E, now called WEX). I know the pain, though small. What happens when Tethers become worth nothing? Every exchange who has USDT now has to write them off. Funny how that is going to work, writing off a token and they will then have to issue their own tokens to buy back customers funds. If you are holding any funds in HITBTC they use USDT, or BItfinex and others. If you have it in other places with USDT you should fully expect those Tethers to be worth 0 and the exchange having to issue everyone tokens. They will have to write off hundreds of millions of USD of Tethers, which will cause them to become insolvent. When they become insolvent they have to issue you tokens, just like BItfinex did, Just like BTC-E did. Hold your own funds, and if you want to trade coins between other coins use Shapeshift. You control your own wallet and private key with Jaxx app and Shapeshift is built in. That is just something I am reccomending based on my limited expeirence, if anyone has another thing that is better (maybe bitshares decentralized exchange?) feel free to let us know.
Mysterious disappearance of Tom Butterfield? (Bitcoin blogger)
Does anyone know what happened, or is happening, with Tom Butterfield? (He's the blogger who conducted the "sting" a few weeks ago on Bitcoin news websites to expose those that accept paid-for articles on bitcoin products and services) Just a few days ago, he posted a link here to a new blog entry on medium.com wherein he claimed to have definitive proof that Jon Matonis and others in the Bitcoin Foundation are corrupt, involved with the Willy Bot on MtGox, and that they were even able to withdraw millions of dollars from MtGox after it was shut down in February for everyone else. He claimed to have all their financial transaction data, shell company information, and even emails proving all of the above. However, just two days ago, he started posting some of the financial data here on reddit and stated that he was in the middle of uploading the rest of the evidence to his blog. That's when things got really strange. First, his Twitter account was deleted or blocked, and then his reddit account here (with gold), was also deleted completely. (Note: the original financial data he posted is still here, so I doubt the mods took action against his account for posting it). His blog at medium.com has sat untouched since (likely because it's tied to his deleted Twitter account), and I haven't seen him post anywhere else either. Anyone know what happened or where this guy went? Did anyone see the rest of his evidence before he disappeared? Inquiring minds want to know... His blog: https://medium.com/@TomOnBTC Article on the alleged corruption: https://medium.com/@TomOnBTC/pissed-about-bitcoin-prices-some-of-the-blame-falls-on-the-bitcoin-foundation-bae91f981d1 Original reddit thread from a few days ago: http://www.reddit.com/Bitcoin/comments/2c6tps/pissed_about_bitcoin_prices_some_of_the_blame/ Edit: Ok, immediately after writing this post, I started getting fucked up messages on Twitter from @gordonflarp (name listed as "Jennifer Baumgartner"), and they're referencing this post in the tweet. Anyone with tor running and the right skills feel like digging into that ID for me? With the number of followers he/she/it has, it looks like it might be a compromised Twitter account trying to run some bots against people who tweet back.... maybe? I don't know. wtf?
The simplest explanation is usually the right one (Occam's Razor): "Willy" was not a conspiracy. It was exactly what Mark Karpeles said it was: a bot/API for high value clients.
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.
Hi Bitcoiners! I’m back with the seventh monthly Bitcoin news recap. Last month's post got very little love, and I don't expect much more success with everyone focussing on August 1st, but here it is nonetheless. In my eyes definitely one of the most eventful months in Bitcoin's history, absolutely unreal how much happened:
SegWit activation imminent
Epic analysis of spam attacks & a 10M-user LN network
2013 price buble & Mt. Gox hack reveals
BTC-e went down
Bitcoin sign guy
Steepest rises and crashes USD-wise
To name a few. For those unfamiliar with the monthly recap, each day I pick out the most popularelevant/interesting stories in bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month. You can see recaps of the previous months on Bitcoinsnippets.com If you're on mobile and can't see the links below, check the web version. A recap of Bitcoin in July 2017
People are worried by Bitmain please remember Tether?
If tether and billions of FAKE USD was fraudulently used to pump the bitcoin price ( like the willy bot in mtgox ), wouldn't most of the bitcoin be bought by fake USD and thus owned by dishonest people? In fact this is a great way for governments to covertly harm crypto adoption. Create multiple fake accounts in legit exchanges, then fund them with government backed secretly printed digital fiat. So long has this printed money is going to crypto in the short term it will create a massive inflation of crypto prices relative to USD ( without devaluing the USD). They can also buy and sell between them selves once they own enough bitcoin.. Then the government will own alot of btc bought using fake money. Just as regular people are starting to cash out and new people are entering the market the government can deliberately crash the market. Also there is nothing stopping the government creating fake accounts on foreign exchanges. Making people lose faith in crypto is the best way to kill it, they wont try and ban traffic or stop people running nodes so small blocks and mining decentralization will do nothing to prevent an ECONOMIC attack. The only way that can be avoided is focusing of adoption and hyper bitcoinization, then we dont need exchanges.... PS, i dont think the US government try such a thing now, such an attack could be carried out by a dodgy exchange with the help of dishonest private companies.
TL/DR: A young man had a secret. To keep it hidden, he kept digging until the hole was a billion dollars deep. This is a speculative tale of a great bitcoin theft from MtGox in 2011 and the efforts that this man undertook to fix it. The tale explains the bitcoin bear market of 2011, the explosive rally of 2013, delayed fiat withdrawals, malled transactions, and a bot named Willy. “By the time you realize that real life has begun, you are already three moves in.”—Author unknown It was June 19, 2011. Mark, a 26 year-old young man—a boy really—was ecstatic. He had recently purchased MtGox—a small, online exchange for trading virtual tokens—and business was booming. These virtual tokens were called bitcoins and Mark loved them. Bitcoins were an obscure curiosity: a peer-to-peer electronic cash system that allowed users to store and exchange credits with any other user in the world, nearly instantly, and without the assistance of a third-party or the permission of an authority. All that was needed was a 78-digit secret number—a key if you will. In order for his customers to withdraw their bitcoins over the internet, MtGox stored some of these keys on its online server. The remaining keys were stored on USB drives and backed up on paper to prevent theft should the server be compromised. But theft was hardly a concern. In October of 2010, bitcoins were trading for $0.10 and the half a million bitcoins held by MtGox was worth only $50,000. But still Mark took precautions, diligently moving bitcoins to offline storage and leaving only what was necessary for customer withdrawals online. He truly wanted both his business and bitcoin to succeed. By April, the bitcoin price had risen to $1 and by June it had exploded to $30. Between June 1 and June 15, an additional one million bitcoins were sent to MtGox and immediately sold, crashing the price back to $10. It was a hectic time, with hundreds of customers needing help, visits from the FBI related to the Silk Road black market, and stress related to the recent market crash. Young Mark was becoming a victim of his own success: there simply wasn’t enough time to get everything done. On this very day in June 2011, the keys to the recently-deposited 1,000,000 BTC were still sitting on his server. Later this day, a group of hackers gained access to MtGox servers and executed fake trades that the world could see, driving the nominal price of bitcoin near $0. Mark was frantic. He quickly regained control of the servers and learned the dark truth: the million bitcoins that had recently flooded in earlier that month were gone. Mark admitted publically to the hack, rewound the false trades, but kept the truth of the missing coins a secret. How could this 26-year old explain to his customers that he had lost their bitcoins? And if the world found out, would this kill the thing he loved so dearly? Would he go to jail? Or worse yet, would someone kill him? Mark decided that he would do what he thought was right: he would slowly earn back the lost bitcoin with MtGox trading fee profits and eventually make his customers whole again. He still had over 500,000 BTC left—he moved 424242.42424242 BTC between bitcoin addresses and convinced the community that MtGox was solvent. As long as withdrawals didn’t exceed deposits over a long period of time, no one would ever find out the truth. Or so he thought. Meanwhile, the bitcoin thieves slowly mixed their coins with other coins, obfuscating the chain of ownership, and then re-selling these coins on MtGox using sock-puppet accounts. Mark tried to stop them, but there was no way he could know for sure which accounts were fraudulent—he even accused innocent people of bitcoin laundering. The constant selling of these stolen bitcoins drove the price down to $2 in November 2011. Mark faithfully used all of the MtGox profits to purchase coins back during this decline. But he would never use customer funds—that was a line he swore not to cross. The selling of these stolen bitcoins continued at a diminished rate over 2012, and Mark continually purchased coins using the MtGox trading fees. The bitcoin economy was growing and new exchanges were opening up across the world. His bitcoin reserves weren’t building fast enough but the price of bitcoin kept rising (along with the dollar value of the missing bitcoins). He was worried that other exchanges would suck coins out of Gox and reveal his secret. He decided he needed to take decisive action: for the first time, he used customer funds to purchase real bitcoins. These large purchases by Mark further increased demand and ignited the great rally of spring 2013 when the bitcoin price shot from $20 to $266. Mark had reduced his liability in bitcoins, but in dollar terms the coins that were still missing were worth more than ever before. On May 15, 2013 the US Department of Homeland Security seized millions of dollars from the MtGox Dwolla bank account. MtGox dollar reserves were already depleted at this point, and with the recent seizure, Mark could no longer make good on customer withdrawals in US dollars. Under the guise of “banking problems,” MtGox slowed US dollar withdrawals to a trickle in the summer of 2013. Customers became increasingly worried and began to bid up the price of bitcoin on MtGox, as this was the only way to escape with their funds. MtGox had little fiat and very little bitcoins, but it learned one thing: as the price differential between Gox and BitStamp grew, the outwards flow of bitcoin slowed dramatically. And so Willy was born. Willy was a bot, discovered by Wall Observers from bitcointalk.org and named by Opet on Bonavest's trading show, who would consistently purchased bitcoins at regular intervals between November 2013 and February 2014. Evidence that Willy belonged to Mark was revealed when both web and API trading at Gox was disabled for a brief period of time, exposing Willy as the only one left buying. Willy served two purposes: he drove the price of bitcoin on the MtGox exchange high, thereby slowing and sometimes reversing the outward flow of real BTC, and he reduced the number of GoxBTC held by clients. Of course, this meant that Willy eventually became the owner of a huge number of GoxBTC (that were of course no longer backed by real BTC). By December, the situation at MtGox was grim. In a desperate attempt to attract more funds, Mark offered reduced trading fees under the guise of celebrating their 1,000,000th customer. This partially worked, but Mark knew it was too late. If MtGox collapsed, it must appear that he didn’t know about the theft until now—for it was better to appear incompetent than criminal. It was time to cover his tracks. He purposely mixed immature coins into bitcoin withdrawals to delay the outward flow of coins, and later began malling his own transactions. He added the Gox malleability weakness not as a bug, but as a feature, so that it would seem plausible that outsiders had recently stolen the coins without his awareness. No coins were actually lost to malleability. The MtGox coin supply dwindled to 2,000 BTC and on February 7, 2014. He had no choice but to disable bitcoin withdrawals. The end was near. The problem Mark faced was that his customers had $150,000,000 credited to their accounts, yet the MtGox bank account only contained $38,000,000. He could blame the missing bitcoins on transaction malleability, but how could he explain where the fiat money went? He shifted Willy into reverse and cranked the throttle. Willy relentlessly dumped bitcoins into the open bids. The price fell further and further, eventually dropping well below the BitStamp price. But still not enough people were buying! He needed his customers to buy the GoxBTC. Willy kept dumping coins until finally the price dropped below $100. MtGox even acquired new USD bank wires from customers looking to purchase the cheap coins. By this time, the majority of Gox customers had converted their dollars into bitcoins. On February 28, 2014, Mt Gox filed for bankruptcy protection in Tokyo, reporting 6.5 billion yen in liabilities, 3.8 billion yen in assets, and 750,000 of customer bitcoins missing. Willy had failed to completely close the fiat solvency gap and Mark finally admitted to having lost the coins. Now we watch the rest of the story unfold. A story of how an oversight during a hectic period, an untimely theft, and an attempt to cover it up, lead to the greatest loss in the history of bitcoin. Cross-posted from: https://bitcointalk.org/index.php?topic=497289.0
OHCC Exchange Partnership and the fractional exchanges that support it. Your exchange may be counterfeiting cryptocurrency!
OHCC Exchange Partnership OHCC is the behind-the-scenes trading that goes on between the big three chinese exchanges - OKCoin, Huobi, and BTC China. Many of the players in this partnership deal with long/short loan trading and freely join their reserves via a trust agreement. The owners of these exchanges were unsatisfied with the meager income they earn from transaction fees, so they came up with a solution. During this current Chinese National holiday til the 8th of october, all banks are closed, this would be the perfect time to unleash the plan to the market.. They noticed that everytime favorable news came out, huge market moves would happen, so, the exchange owners would create counterfeit fiat on each exchange in order to foster optimism about the future market for the buyers on the exchange. Whenever the markets were to go bad, they would to do the opposite. In order to amplify downwards movement on the exchanges, “war bots” were created that push the markets down in an aggressive manner, causing margin calls and generating profit for their trading partners. http://i.imgur.com/9Q0xTet.png Employing traders with large fractional reserves, OHCC uses these fictitious funds in order to garner more real money deposits via leading recharge code sellers. In order to prevent the loss of the counterfeited currency, collusion between exchange owners must be done at the same moment. BTCChina decided that due to losses of funds in the past caused by bad encryption and bugs in the system, they needed to partner together and now think that the best hope to regain funds is to bring the price down to zero, in order to buy as much coin as possible and refill said reserves. Their counterparties in other exchanges agreed that they will aso use the same means, in order to collude and gain profits on their own reserve accounts. It is made to look that everyone is competing on the surface, but in private there is a mutual understanding within the industry that those who remain silent will receive the benefits of silence. Yesterday's Litecoin crash, combined between all the exchanges had turnovers as high as 20 million coins moved, way more than the sum of all the transactions made within the past week and the day before the transaction currency trading market volume closed at 35 million LTC, while the total LTC in circulation is only 31 million! This means that regardless of how much money you have to buy the dips, many will be put into the bottomless black hole. Public reserve is intended to ensure that the exchanges cannot fake these funds and ensure that that each is at 100 percent reserve, which is to have a completely open Bitcoin wallet address for both the cold and hot wallet, to ensure that they do not create counterfeited currency. Not open exchange reserves Yes, the above story is happening around us. Many players excessive dependence on trading platform, the coins stored in the platform, and trading platform does not fulfill its obligations disclosed reserves. Caused a trading platform for profit making counterfeit money to manipulate the market and malicious trick users into real money. So, how should users involved in this market protect themselves? 1) Do not store in Bitcoin and other platforms! If you're long-term bullish market, then Bitcoin, and Litecoin should be stored in their wallet. Some platforms will be committed borrowing interest, do not because of the platform for the petty and the coins and other bits on the platform, and finally you get the benefits far outweigh the losses! You just put the coins and other bits emerged, the trading platform will mention now facing pressure. Such power can be reduced more or less of them false. OpenBlock MultiBit 2) Use legal weapons to protect themselves, and urge the public to prepare gold trading platform. If you feel your rights have been infringed, the user should actively protect their legitimate rights and interests with legal weapons. False trading trading platform is an offense, the player must zero tolerance. 3) Vote with their feet, leaving no open exchange reserves, to publicly exchange reserves to deal. Now open reserve all transactions: chbtc 796 Futures has a open reserve for both hot and cold wallet as well as all member wallets Peatio No public exchange reserves should be open as soon as possible to prepare gold proved reserves include the number of hosted prove cold wallet address and user renminbi. You must ensure that the trader is not real money in exchange for false then the exchange of digital databases. The method proved reserves See: proof-of-solvency Ending OHCC Exchange http://i.imgur.com/njub1Nr.jpg The largest Bitcoin exchange MTGOX previously collapsed with bankruptcy and no funds for partners seem to be recoverable. With their collapse the crazy behavior of the Willy bot still vivid in our memories. So what will be the final outcome of OHCC exchange? Will OHCC Exchange will become the second MTGOX? To be honest, the editors do not know the fate of the players involved, as it is in their own hands.
I have held Bitcoins since 2011. Never bought any, but mined a few with 5770 cards and later a BFL machine. I held through all the boom and bust cycles. Uncountable China bans. MtGox and Willy bot. BCS&T. Silk Road. It went from $30 to $2 - I HODL. From 1160 to $150 - I HODL. But now its different. Never has hash rate been withdrawn from bitcoin in such a dramatic manner within hours. Never an alt has reached 51% of Bitcoin valuation. This is not about BCH and the flippening. This shows how fragile Bitcoin really is and how easily it can be manipulated. Nobody in their right mind will approve ETF or futures. Nobody will store real estate registry or bond contracts on a blockchain that is so vulnerable. I SODL and gone all fiat. It's been a good ride. Core development team has gone completely nuts. They believe that miners don't matter, they apparently want to replace mining with: whoever reads more Our Father and Hail Mary prayers in 10 min, wins the block.
NOTE: I'm trying my best but because of the sheer volume of tidbits popping up every day, this post might ocasionally miss some updates. Please feel free to point it out in the comments whenever you feel there is information missing in the post, thanks! A note on recovering funds: We have no information on how to recover fiat/bitcoins/goxcoins yet and MtGox has only given very vague statements so far. It is speculated Mark Karpeles (CEO of MtGox) is currently figuring out what to do and not flying to the Bahamas with our money. It is advisable to have patience and wait for new developments on the subject for the time being. March 26th, 2014
Following its application for commencement of civil rehabilitation, MtGox Co., Ltd. consulted with the metropolitan police department with regard to the disappearance of bitcoins which is one of the causes for said application. MtGox Co., Ltd. hereby announces that it has submitted necessary electronic records and other related documents. MtGox Co., Ltd. intends to fully cooperate with each competent authority. Further, MtGox Co., Ltd. continues to make efforts to clarify facts as quickly as possible and to recover from damages.
Match 25th, 2014 A new rumor has surfaced twitter, currently unsubstantiated, from @CanarslanEren who according to his previous tweets would have previously either guessed correctly or know in advance about the recovered 200K BTC (emphasis mine):
Within a few days(or hours) @MtGox will announce that "they found ~670.000 #bitcoin & may release some BTCs to the victims. @PatronaPartners
There's a new update on mtgox.com confirming the previous story of having recovered 200K BTC that were thought lost. Key points:
On March 7, 2014, MtGox Co., Ltd. confirmed that an oldn format wallet which was used prior to June 2011 held a balance of approximately 200,000 BTC (199,999.99 BTC)
For security reasons, the 200,000 BTC which were at first on the 7th moved to online wallets were moved between the 14 th and the 15th to offline wallets.
The bitcoins held today by MtGox Co., Ltd. amount to a total of approximately 202,000 BTC, including the above 200,000 BTC and the approximately 2,000 BTC which existed prior to the application for commencement of a civil rehabilitation proceeding.
March 20th, 2014
Several users were reporting issues with the balance-checking tool online at mtgox.com, namely that bank transfers and transactions stuck in progress were not showing. This is now apparently fixed and balances seem to have been accordingly updated. Thread here.
In line with the blockchain movements we've seen for the past few weeks and the respective MtGox API activity, finally a japanese news article appeared where MtGox lawyers announce MtGox has found and owns 200K BTC, translation, courtesy of h1d:
Bitcoin exchange Mt.Gox which collapsed in February announced on 20th that they have found they're still in possession of the 200,000 BTC out of the 850,000 BTC that was reported to be lost. According to the lawyer, they found them on the 7th of this month by searching through a storage on the internet called a "wallet" which was being used by MtGox up until June 2011. MtGox has reported that they have lost almost all of the 850,000 BTC owned while filing for bankruptcy protection on February 28th.
A new update on mtgox.com is now online: account holders can now provide their login authentication data on the site to retrieve the last status of their wallets for convenience. It would appear that this update is legimitate, Redditcoinstates:
I just called the MtGox call centre in Japan - they confirmed that the login has been put there by "legal" and they have not been hacked. I called this number from the original banckrupty announcement (I called from Australia - we are only 2 hours ahead): +81 3-4588-3922. A nice man with an American accent said that the login has been put there by "legal" for users to check their balances and that the website has not been hacked.
Redditcoin asked for transaction history data as well:
I called the number again (about an hour later) - again, absolutely no waiting - I called again to ask about my transaction history. The same man answered, with the American accent (although sounded Japanese), who spoke impeccable English. He said that the transaction history is still unavailable because the courts still have to "polish" it (whatever that means). I said I needed it for taxation purposes. He replied by saying he will "check on this, and post an update on the website soon".
As for the balance data that can now be retrieved on mtgox.com, the site notes (emphasis mine):
This balance confirmation service is provided on this site only for the convenience of all users. Please be aware that confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure and note that the balance amounts shown on this site should also not be considered an acknowledgment by MtGox Co., Ltd. of the amount of any rehabilitation claims of users. Rehabilitation claims under a civil rehabilitation procedure become confirmed from a filing which is followed by an investigation procedure. The method for filing claims will be published on this site as soon as we will be in situation to announce it.
The MtGox API which used to list pending transactions has been removed today. In the past few weeks, this API had shown that the hundreds of thousands of BTC moving in the blockchain connected with MtGox wallets could still belong to Gox. Thread.
we are working on resuming service, can't say how soon it'll be
While the authenticity is still in question, if true this would be in line with all the rumors and hints we've seen up until now. March 15, 2014
The hundreds of thousands of coins moving in the blockchain that MtGox allegedly still own have been spotted doing something new: the outputs are now merging in new addresses of 2K BTC each. This was first spotted in this thread and later confirmed here. As usual, we have zero indications of what this means yet. -Mahnspeculates:
The only thing I can imagine myself is that whoever is doing the splitting decided 50 BTC was too little or would take too long and switched to bigger outputs per address.
New movement in the MtGox order book as reported by their still online API has been detected. Thread.
March 14th, 2014 There's a new update on mtgox.com concerning their Chapter 15 US filing. It contains no new information other than the confirmation of the news that appeared on March 11th. March 12th, 2014
MtGox US subsidiary assets have been temporarily frozen by US Judge. Story here.
"On February 7, 2014, all bitcoin withdrawals were halted by MtGox due to the theft or disappearance of hundreds of thousands of bitcoins owned by MtGox customers as well as MtGox itself. The cause of the theft or disappearance is the subject of intensive investigation by me and others -- as of the present time I believe it was caused or related to a defect or "bug" in the bitcoin software algorithm, which was exploited by one or more persons who had "hacked" the bitcoin network. On February 24, 2014, MtGox suspended all trading after internal investigations discovered a loss of 744,408 bitcoins presumably from this method of theft. These events caused among others MtGox to become insolvent and to file the Japan Proceeding."
After long digging I finally found a workable scenario explaining virtually everything: missing coins and fiat and even so called Willy the Bot.
lnovy> Yes... stay tuned... I have a clue :) gammer> lnovy any news ? lnovy> yes... almost... I'm missing just one single piece now gammer> if you're pulling a prank on us these couple of days... it so not cool :D lnovy> They way the theft worked was usign the paybutton api lnovy> there is an obvious cross-site request forgery bug in it lnovy> attacker create a one-shot button, setting a price in USD and putting in a bitcoin address lnovy> then he made a victim with mtgox account "click" this pay button lnovy> which caused market buy order for that amount to be filled (known as satoshi's thrust, or willy the bot) and after filling coins were instantly send to target address gammer> lnovy: you know this for a fact? lnovy> when you combine this with some other scamming/carding technique and faked AML documents, mtgox would lose bitcoins and fiat deposit would be charged back lnovy> I'm sure of it up to the second part (when you combine...) lnovy> I can prove it lnovy> well... not prove it... but I have no other possible explanation gammer> how you get the victim to click your "custom" button? lnovy> check the source of this page http://webcache.googleusercontent.com/search?q=cache:bnsz3it6l9YJ:https://payment.mtgox.com/21b2e5c5-79d5-4192-bd6e-9e08975cc3ac+&cd=59&hl=en&ct=clnk&gl=cz&client=firefox-a lnovy> no protection against csrf gammer> We lack data. These are all great (impressive) guesses, but far from a smoking barrel. lnovy> notice that when you google 21b2e5c5-79d5-4192-bd6e-9e08975cc3ac lnovy> You already paid that transaction in the past! We have a transaction from your account on the 2013-08-08 13:20:12 lnovy> When you lookup "2013-08-08 13:20:12" in withdrawals db lnovy> ae04aae7-d6dc-4f34-a2df-0930480786e6,e887c417-1fbe-4988-a76d-515b6a528e8b,"2013-08-08 13:20:12",withdraw,-26.92114483 lnovy> this user did two withdrawals only, no deposits lnovy> ae04aae7-d6dc-4f34-a2df-0930480786e6,ce7a32a0-1be7-4c0c-b06c-75aa77f5c311,"2013-08-08 13:05:45",withdraw,-27.18101624 lnovy> this is the second one lnovy> his balance is lnovy> | ae04aae7-d6dc-4f34-a2df-0930480786e6 | 83d24ca9-0f6e-4061-ad75-f4698c9ad58a | BTC | 56783893 | 0 | 7 | virtual | NULL | NULL | N | 2013-08-08 13:20:12 | gammer> hmm, maybe there is some smoke there. lnovy> | 673c4e76-a8e1-424a-af72-f994054236f4 | 83d24ca9-0f6e-4061-ad75-f4698c9ad58a | USD | 7952770 | 0 | 4 | virtual | NULL | NULL | N | 2013-08-08 13:04:28 | lnovy> notice that no more moving of BTC was done after withdrawal at 2013-08-08 13:20:12 lnovy> ../trades/2013-08_coinlab.csv:1375967016444075,"2013-08-08 13:03:36",592438,83d24ca9-0f6e-4061-ad75-f4698c9ad58a,ec0919d81d73ab12dc7375677723fea9,NJP,buy,USD,54,5507.94438,97.114,534897.778,0,97.114,0,0.1296,1330.073,US,NJ lnovy> ../trades/2013-08_coinlab.csv:1375967068401809,"2013-08-08 13:04:28",592438,83d24ca9-0f6e-4061-ad75-f4698c9ad58a,ec0919d81d73ab12dc7375677723fea9,NJP,buy,USD,1,101.97792,97.114,9903.47,0,97.114,0,0.0024,24.631,US,NJ lnovy> he did only this two trades... lnovy> notice that all of his limit value on wallets is null, but dissable limit is false lnovy> last piece: https://blockchain.info/address/1La4eXNXYLF41cnkADh2pKi8LGN7ePSFde lnovy> this address leads to mixnet :) lnovy> so... is the barrel smoking now? gammer> Looks convincing gammer> Any way to tell how much flowed through that exploit? lnovy> well... my query is still running... But I bet, that everything that was considered to be "will the bot" will be linked to this method lnovy> can I leave your nicknames in when I paste this on reddit?
Mosaic’s Weekly Cryptoasset Roundup — April 30, 2018
Mosaic constantly monitors a wide range of sources for cryptoasset news and summarizes the most interesting items in a daily newsletter. In addition, we are now providing this weekly roundup which draws together and analyzes our favourite news and features of the week. Mosaic’s Friday feature of the day was “Mt. Gox and the Surprising Redemption of Bitcoin’s Biggest Villain” by Jen Wieczner (Senior writer @ Fortune Magazine, Wall Street). The article gives a brief overview of the events following Mt. Gox’s bankruptcy in 2014 and the legal proceedings following Karpelès’s arrest in August 2015 on charges of manipulating electronic data related to the internal Mt. Gox account called “Willy Bot”. The article deals with Karpelès’s attempt to deal with the surge in the bitcoin price following the bankruptcy which, due to Japanese bankruptcy law, would have made him a billionaire and left Mt. Gox creditors without any exposure to any of bitcoin’s subsequent appreciation. Fortune’s feature on Karpelès coincided with news that Mt. Gox’s trustee had transferred over 16,000 BTC, worth around $144m, and 16,000 BCH, worth $21m, from the trustee’s vaults to an unknown address, sparking fears of a large sell-off. According to CryptoGround, which monitors Mt Gox’s remaining wallets, the bitcoins were removed from four separate addresses in increments of approximately 2,000, with 0 BTC remaining in each wallet that the funds were extracted from. The wallets are under the control of the exchange’s bankruptcy trustee, Nobuaki Kobayashi, a Tokyo lawyer who also revealed in March that he had sold about $400 million of Mt Gox bitcoin and bitcoin cash in September of 2017. Kobayashi is tasked with liquidating the tokens on behalf of Mt Gox’s creditors, most of whom have not recovered their funds after the exchange closed its trading operations in 2014.
What do you guys think about this theory: https://bitcointalk.org/index.php?topic=615261 Personally, I think it isn't too far fetched that something similar happened. An attacker from inside of gox steals bitcoin & fiat by artificially inflating the numbers of the database, perhaps with the help of trading bots which would explain the phenomena we call Willy. Meanwhile the majority of the real coins (202k) are safely secured in cold storage. Once Mark notices that the numbers don't add up he goes into full panic mode, shuts down all trading and declares insolvency with the bullshit excuse of 'transaction malleability'. It would also explain why the Japanese authorities that have complete access to MtGox's servers & transaction history only discovered that 27k were stolen. Maybe the rest of the coins never existed and this was all one giant ruse? Any thoughts?
EXCEPT Willy, the infamous buy bot suspected of belonging to Mount Gox itself. During the next ~90 minutes, Willy continued to buy his usual 10-19 BTC every 6-20 minutes while nobody else in the world could trade. I captured several screenshots of the activity at the time. Using the attached screenshot with timestamps, can someone please try to find these trades in the leaked data? (timestamps ... [MTGOX] “Karpeles admits operating Willy bot” Submitted July 11, 2017 at 01:48PM by jmaurice via reddit The Willy Report show that two buying bots, named Willy and Markus, regularly bought large quantities of Bitcoin from early 2013 until January of 2014. Overall, the bots spent approximately $112 million, with the majority of this buying taking place in November of 2013. The author notes that it was the activity of these buying bots that drove Bitcoin's price so high, not the often cited ... A Bot Named Willy: Did Mt. Gox’s Automated Trading Pump Bitcoin’s Price? There is more speculation today that bitcoin’s November 2013 surge and Mt. Gox’s trading volumes were built in part ... A single-page blog called “The Willy Report” (removed in the meantime) has recently denounced an alleged plot to manipulate the price of Bitcoin through the use of bots.According to the report, authored by a cryptocurrency trader who claims to have analyzed several trading logs starting from November 2013, a bot named Willy is the one to blame for last year’s wave of volatility.
The infamous Mt Gox Bitcoin Exchange has had another sell off in May of 2018. This time, 24,000 Bitcoin (Approx $225M) has been sold sending the price of Bitcoin plummeting under $9,000 USD. The ... BITCOIN PRICE , BITCOIN FUTURE in doubt http://youtu.be/eO-yrpQpIT8 What is NAMECOIN BITCOIN'S First Fork http://youtu.be/oBkhPhu3_B4 Test Scanning Stainless... MtGox Bitcoins to BTC e Bitcoins in 50 seconds BITCOIN PRICE , BITCOIN FUTURE in doubt http://youtu.be/eO-yrpQpIT8 What is NAMECOIN BITCOIN'S First Fork Web page http://qtopentrader.com/ Open source trading client for Mt.Gox and BTC-e written in Qt. This software helps you to open and close Mt.Gox orders very... This video is unavailable. Watch Queue Queue. Watch Queue