Brushing, malicious downtime, assisting money laundering, demystifying virtual currency routines

Brushing, malicious downtime, assisting money laundering, demystifying virtual currency routines
In recent years, the speculation of virtual currency speculation has prevailed, and even under strong supervision, there are too many exchanges committing crimes.According to the survey, the virtual currency trading platform “cut leek” routines, including fraudulent transactions to deceive customers into the market, and then manipulate the market price and malicious downtime to force customers to liquidate, some platforms even become criminals laundering tools.After the ICO was cleaned up and rectified, new financing methods such as IMO have appeared, and many exchanges and project parties have passed “going to sea” to avoid the law.The reporter was informed that after the joint rectification of virtual currencies with the seven departments such as the Central Cyber Office in 2017, the 173 virtual currency trading platforms collected around the year basically achieved a risk-free exit, and bitcoin traded in RMB accounted for 90% of the globalMore than% is expected to be less than 5%.Many departments continue to monitor and crack down on the “going out” virtual currency trading platform. Finally, there are currently more than 300 “going out” virtual currency trading platforms monitored and disposed of, which is notable.Experts remind that the crowd should keep their eyes open, actively enhance the awareness of risk prevention and self-protection, and not blindly follow the hype.If any institution is found to be involved in such illegal financial activities, it should report to the relevant department in time.Routine 1: The transaction volume is abnormally high, attracting customers to enter the virtual currency trading platform through fake transactions. The huge transaction volume is brushed through the fake transactions, which can obtain a higher ranking on the coin market value website and create a false market prosperity.Customers generally overestimate the value of virtual currency, thereby attracting customers to enter the market.The market survey found that the average turnover rate of the top three virtual currency trading platforms was 13 respectively.25%, 8.33% and 6.15%, which is significantly higher than the average turnover rate of foreign licensed exchanges2.37%, respectively higher than 5.6 times, 3.52 times, 2.6 times, indicating that there are major suspects in the trading platform that use robots to brush the amount.In addition, in the market survey, we randomly sampled the transaction amount sample data of several large-scale virtual currency trading platforms for analysis, and found that their transaction characteristics violated Benford ‘s law, and the frequency of a certain number in the transaction amount showed an abnormal tailing phenomenon.It shows that these data have been artificially modified and are not the result of natural transactions, which further proves that there are false transactions and data fraud in the trading platform.Routine 2: Malicious machine shutdowns force leverage trading to “crack up” to manipulate the market. Market investigations revealed that certain virtual currency trading platforms colluded with each other to plot customer property.A platform used the method of “unplugging the network”, which caused many abnormal phenomena such as flashbacks, stalls, and undisplayable positions on the trading platform, affecting customers’ normal order placing, order cancellation and position closing.The downtime generally lasts from half an hour to 2 hours.At the same time, another platform manipulated prices through robot trading, forcing prices to be lowered or increased during shutdowns on other platforms.In the case of a 10 times or even 20 times higher leverage, customers face huge changes in prices, because the system shutdown can not choose to stop losses or make up positions, and can only be forced to explode positions, resulting in heavy losses and even nowhere to return.Some platforms have re-exchanged roles, so the trick is repeated, replacing the former to manipulate prices, and shutting down the machine to encroach on customer property.The investigation found that a large-scale virtual currency trading platform had a total of 6 system shutdowns within a year, of which 3 were sudden failure shutdowns, and the platform admitted that there had been 2 liquidation bursts.At present, there have been many cases in which the interests of contract investors have been damaged due to the inability of the virtual currency platform to log in.Routine 3: Use the features of anonymization and decentralization of virtual currency to launder money for criminals. The virtual currency represented by Bitcoin has become anonymous and global. It has become an accomplice to criminal money laundering and is a social risk.In the Easton case, Easton illegally made more than $ 2 billion in domestic stock index futures and tried to transfer funds through a Bitcoin trading platform. The transfer failed because of the huge scale and the inability to provide complete proof materials.Routine 4: The project party and the exchange are “close to the same family”, and there are teams full-time “pulling and smashing the disk”. It is not just that the platform will be stunned. The sauna and nightnet survey found that some project parties and the exchange are also “close to the same family.”A number of internal staff of the exchange told reporters that the exchange will require the project party to conduct “market value management” and “pull and break” in some stock markets.Some new projects that go online are required to be bought and sold to cause changes in market value, otherwise no one will buy them in the future.The packaging and promotion of new projects are more important, and marketing methods must be innovative. Some popular “resonance” and other fund-raising hot spots must be rubbed, and the projects that evaluate “usually very sexy” in the circle will only rise.Traders also need “rigorous planning.”Although buying from the secondary market can be done in large quantities, how to change (that is, “selling coins”) must be in accordance with the rhythm of the project party.During the transformation process, the project party has to announce some advantages, instead of repurchase, reverse lock the position, the main online is online, and when the market attention is gained and everyone is willing to buy, the market value management team can replace it.Routine 5: New financing methods come online, and the speed of “innovation” in suspected MLM financing methods is also very fast.Sauna and Yewang survey found that one of the current illegal fund raising methods in the currency circle is IMO.IMO (Initial Miner Product) refers to the issuance of tokens by selling hardware / mining machines for the first time. Such projects have been deemed illegal by the law. Later, a new variant of IMO, “Initial Model Offer”, became popular again, and new IMO implementation projects continued to pass.The limited-area private placement obtains periodic gains.In this model, subscribers need to “pull heads” if they want to sell their virtual currency as soon as possible and obtain higher benefits.A reporter’s investigation found that even investors who called themselves “students” joined.Virtual currency exchanges such as Bitmain, OKex, and Binance also noticed the introduction of virtual currency wealth management products, whose prototypes closely resemble the traditional financial market’s Yu’ebao, index funds, etc.Another popular financial management model is “staking (storing money). At the same time, it is similar to depositing dividends. In the traditional stock market, dividends are represented by FCoin.Initial sources said that virtual currency wealth management may encounter risks such as black-box operations and exchange runs.Routine 6: Exchanges use “foreign accounts”. Currently, many exchanges and project parties will use the company owner as a foreign company to propose that there is no operational risk to users.Many exchanges have relocated their registration locations to Seychelles, Cayman, Singapore and other countries, including domestic companies within Huobi.Xiao Sa, the director of the Bank of China Law Research Association, said that at present, the most commonly used routines of project parties who are trying to issue currency are “foreign accounts”. The server is set up abroad, and the internal “road show promotion” will sell coins to Chinese.Since China does not recognize dual nationality, that is, “foreign residence registration” does not affect the Chinese laws and regulations to regulate its illegal activities.However, if the actual issuer is a Chinese national and the ICO and other financing objects are Chinese people, such financing is considered illegal.Sauna, Ye Wang Cheng Weimiao Zhang Shuxin Editor Chen Li Wang Jinyu Proofreading Li Ming