Fake It Till You Make It: When Bitfinex themselves used to spoof their entire orderbook.

Source
Bitfinex Chief Financial Officer, Giancarlo Devasini

So? What’s wrong with that?

Source (Archive)

The problem.

  1. Bitfinex in reality only has 200 BTC for sale to $700, and they ‘imported’ the orders from Bitstamp for 450 BTC.
  2. Your sell order for 450 BTC on Bitstamp goes through.
  3. Bitfinex’s trade engine now has to match orders that no-longer exist on Bitstamp, because you sold on Bitstamp before their trade engine arbitrage bot could ‘catch up’.
  4. You sold 1,100 BTC, but in reality there was only 650 BTC in bids to $700.
Notice how the Bitfinex price sunk way more than the rest of the market.

Figuring out Bitfinex’s so-called ‘speed bump’.

Note: this is from yet another 2014 flash crash. Source (Archive)
Source

Those damn manipulative traders!

The ‘manipulator’ was likely someone just selling

Does Bitfinex still do this?

Conclusion

The comic version of a Spoof

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Blog for @Bitfinexed on Twitter. Exposing possible fraud by largest Bitcoin exchange, Bitfinex/Tether

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Bitfinex’ed

Bitfinex’ed

Blog for @Bitfinexed on Twitter. Exposing possible fraud by largest Bitcoin exchange, Bitfinex/Tether

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