Was the Mt. Gox Bitcoin Heist an Inside Job? The Willy Report

From the files of “stuff I’ve been meaning to cover for a while” — a lengthy and equally fascinating analysis of information released and leaked from Mt. Gox in the wake of that Bitcoin exchange’s collapse.

Rather many signs suggest that, rather than being a “heist” that took advantage of an aspect of the Bitcoin protocol which Mt. Gox used incorrectly, the whole thing was a “heist” by someone deep inside the Mt. Gox company… quite possibly “MagicalTux,” or Mark Karpeles, himself.

And that’s just the beginning. If this anonymous author is correct, then not only was the heist an inside job, but some / many / all of the major Bitcoin price “spikes” over the last few years were frauds. Fakes. Manipulated. The product of a “bot” on Mt. Gox which could buy Bitcoin without having to spend real money.

In other words, much of what Bitcoin investors know about the behavior of their market may be wrong. (Before you panic, a quick check of the charts [1] suggests Bitcoin’s price is currently still upwards of 600 USD without the influence of Mt. Gox’s maybe-a-bot.)

And all this still raises the question. Was idea of Bitcoin pumped and hyped and injected into the mainstream media, with their breathless coverage of its spiking value, by some dude with a bot?

[1] http://www.bitcoincharts.com/


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