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by Brotkrumen 3110 days ago
I'm not sure I understood correctly. Could you elaborate?

Wouldn't selling created bitcoin lower the price of bitcoin at your exchange? A lower price would attract USD and the exchange would leak BTC with people doing arbitrage.

Then if you claim a hack wouldn't you have to show that value moved to the hackers wallets and that value and the value you retain had to add up to the total value received in BTC? And if the "stolen" amount of BTC couldn't be shown to be in another wallet, wouldn't the fraud be discovered?
2 comments
mv4 3110 days ago
Re: "When you buying Bitcoins they go to your wallet and you can verify the transaction on blockchain.info."

Not necessarily. For example you can trade on GDAX (between ETH/BTC/LTC/USD) without hitting the blockchain. Once you "withdraw" your purchase and deposit it into "your" (because it's not really your wallet) wallet on Coinbase, then maybe.

Many of these "internal" exchange transactions are only reflected in their internal DB and not public blockchain.

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mv4 3110 days ago
I think the parent comment was referencing "wash trades", where you trade between your own accounts to create an illusion of active trading (or movement up or down - whatever your objective may be).

Currently this is very easy to do. Such trades are local to the exchange, so they don't register on the blockchain. If you execute them as "maker" (limit) orders, there aren't any fees either. So you can fake significant market activity for free.

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