Wash Trading Bitcoin: How Bitfinex benefits from fraudulent trading

I was wrong.

Bitfinex employee “Andrew” regularly acts as PR for Bitfinex on Reddit. Source (Archive)

The dirty secret about Bitfinex’s trade engine…

PSA: The Bitfinex trade engine ALLOWS for WASH TRADING

Take note that this is only the most obvious form of wash trading. You can’t detect wash trading that is disguised properly externally.
Wash trading of short positions on Bitfinex.

Bitfinex has admitted that they have wash traders

Source (Archive)

So, obviously, this is a bug right?

“For clarity, are you still permitting this practice of self-funding and doing what we call 1x hedge shorts? Is this still permitted in general?”

Phil Potter: “It depends on what the purpose is.

“So, as a matter of policy it seems like Bitfinex still permits it but on a case by case basis, but determined if there is any manipulative practices that require sanction?”

Phil Potter: “I’m not going to acknowledge that the way you say it per-se…”

Bitfinex committed fraud against their investors

Their ‘valuation’

Shareholder Information
Where have we seen this before? Right here.
Sidenote: Bitfinex admitted they knew their lawsuit was bullshit, prior to filing it.

Bitfinex used so-called ‘reserves’ to pay back the remaining outstanding tokens that did not convert to equity.

So let’s review:

They forgot to mention the leaf is attached to a lemon. Oops.


Source (Web Archive)
Phil Potter does not trade bitcoin. He sells bitcoin on the way up and buys it on the way down. Contrary to what people may think, this isn’t trading at all. Honest.



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