‘Mt. Gox deliberately drove up bitcoin price’

The bankrupt Mt. Gox is said to have deliberately pushed up the price of bitcoin considerably at the end of last year with the help of a number of bots in order to benefit from the price increase. The price of the crypto currency rose to almost 1200 dollars at the time.

That is the opinion of the Willy Report weblog based on an analysis of bitcoin transactions on the former Mt. gox. By means of two manipulated bots that traded in the virtual currency, the bitcoin exchange, the largest trading place at the time, would have pushed up the price. The behavior of the bots was predictable, according to the analysis, and in addition, the virtual traders took notable positions at certain times. The bots would have caused the bitcoin price to rise rapidly, with the currency breaking the $1,000 ceiling in November. The value peaked at about $1200. mt. Gox made money by skimming off a percentage of bitcoins bought or sold.

The author of the investigation of the Mt. Gox affair says the results of his investigation point to fraud, presumably committed from within the former trading place. It has long been suspected that Mt. Gox didn’t play by the rules, but that hasn’t been hardened so far. The Japanese company closed its doors in February after 850,000 bitcoins were allegedly stolen, according to the company. A bug in the protocol implementation would have been the cause.