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China Bitcoin

Chinese Bitcoin Exchange Accused of Faking Trade Data 75

Posted by samzenpus
from the fudging-the-numbers dept.
An anonymous reader writes in with this story about some questionable numbers reported from bitcoin exchange OKCoin. "Top Chinese bitcoin exchange OKCoin has been accused of publishing fake trading data, artificially inflating the number of currency transactions it is handling. Once China's second-largest bitcoin exchange, OKCoin is claimed to have published unrealistically high trading volumes in the wake of the Chinese central bank imposing a ban on financial institutions handling the crypto-currency. The ban saw several exchanges halt all incoming deposits, but OKCoin's trading data failed to show the dip experienced by fellow exchanges."
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Chinese Bitcoin Exchange Accused of Faking Trade Data

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  • No Such Thing (Score:5, Insightful)

    by mythosaz (572040) on Monday December 23, 2013 @01:21PM (#45767733)

    No such thing as bad press if you're Bitcoin. Just keep it in the news, and it'll stay worth something.

    $658 as I type this.

  • Re:China (Score:5, Insightful)

    by mi (197448) on Monday December 23, 2013 @02:19PM (#45768231) Homepage

    The Chinese never met a game they didn't cheat at.

    That's what decades under a totalitarian rule do to people... They see nothing wrong in cheating the government because, as they were growing up, there was nothing but the government doing things — doing poorly and dishonestly. Myself having grown up in the USSR I sympathize...

    And now that the cheating is deep in most people's minds, it is very hard to stop applying it even to non-governmental parties. A generation or two of honest rule must pass — and China has not even started yet. Meanwhile the US — formerly known as the shining house atop the hill — is marching into the wrong direction with an increasing cadence...

  • Re:No Such Thing (Score:4, Insightful)

    by TheCarp (96830) <[ten.tenaprac] [ta] [cjs]> on Monday December 23, 2013 @02:32PM (#45768331) Homepage

    > Every bitcoin has a transaction log associated with it.

    Except exchanges don't necessarily need to use bitcoin to trade bitcoin. If you deposit money in a bank, and then wire the funds to another account, and then withdraw them, would you expect to get the same bills back? Of course not! The bank tosses your bills in with the rest and then hands back different ones from the pool.

    So if I send bitcoins to an exchange and sell them, then the buyer sells them later, that is 3 transactions (me sending them btc, me selling them, someone else selling them) only one of which must be in the block chain and that one isn't even counted as part of the volume!

    So yes, you are right:

    > Why not simply "query the database" as it were and analyze the data. This would be a fairly
    > straightforward procedure for a forensic accountant.

    Correct but the database is the private database of the exchange, which then should be correlated with the public block chain, but likely has a lot of information not otherwise in the block chain.

    -Steve

  • by Lloyd_Bryant (73136) on Monday December 23, 2013 @02:48PM (#45768471)

    Apropos of nothing, has unregulated speculation decreased since the SEC was established?

    Wish I had mod points. The reality is that the SEC is to unregulated speculation what the TSA is to terrorism - just a show to convince the people that the govermnet is actually doing something about the problem.

    Maye we should add the term "regulatory theatre" to the lexicon along side "security theatre"...

Hacking's just another word for nothing left to kludge.

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