Beijing news: virtual currency trading platform "cut leek" four sets

Original title: "brush volume, malicious downtime, assist in money laundering, virtual currency tricks revealed"

Source: Beijing news

In recent years, speculation in virtual currency is prevalent, even under strong supervision, there are still many trading platforms against the wind.

According to the investigation, the practice of "cutting leek" on the virtual currency trading platform is common, including cheating customers into entering the market through fake transactions, then forcing customers to open their positions by manipulating the market price and malicious outage, and some platforms even become a tool for criminals to launder money. After icos were cleaned up, new financing methods such as IMO emerged, and many trading platforms and project parties went to sea to evade the law.

The reporter learned that in 2017, after the people's bank of China and the cyberspace administration of China (cac) and other seven departments jointly cracked down on virtual currency, 173 domestic virtual currency trading platforms were basically risk-free, and the proportion of bitcoin traded in RMB in the world dropped from over 90% to less than 5%. As for the "offshore" virtual currency trading platform, multiple departments have been continuously monitoring and cracking down on it. So far, more than 300 "offshore" virtual currency trading platforms have been monitored and disposed of, with remarkable results.

Experts remind the public to keep their eyes open, take the initiative to enhance the awareness of risk prevention and self-protection, not blindly follow the hype. If any institution is found to be involved in such illegal financial activities, it shall promptly report to the relevant authorities.

Set one: abnormal trading volume, through false trading to attract customers to enter

The virtual currency trading platform generates a huge volume of trading volume through fake trading, which can obtain a higher ranking on the website Coin Market Cap, create a false impression of a prosperous Market, and make customers generally overestimate the value of virtual currency, thus attracting customers to enter.

The market survey found that the average turnover rate of the top three virtual currency trading platforms was 13.25%, 8.33% and 6.15% respectively, which was significantly higher than the average turnover rate of the licensed trading platforms in foreign countries (2.37%), which was 5.6 times, 3.52 times and 2.6 times higher respectively, indicating that the trading platforms were under major suspicion of using robot brush volume.

In addition, in market research, the random several large virtual currency trading platform trading amount of the sample data were analyzed, and found the transaction characteristics to violate the Benford's law, the emergence of a digital frequency present in the abnormal trading volume he phenomenon, have shown that these data after modification, not natural and trading results, further prove the existence of trading platform false transactions and data of fraud behavior.

Routine two: malicious downtime forced leveraged trading "burst" to manipulate the market

Market research has found that some virtual currency trading platforms collude with each other to plot the assets of their clients.

A platform through the "network cable" method, so that the trading platform many times appear flashing back, card, position can not be displayed and other abnormal phenomena, affecting customers normal order, withdrawal and position trading operations. Downtime typically lasts from half an hour to two hours. At the same time, another platform manipulates prices by buying and selling robots, forcing prices down or up during other platforms' outages. In the case that the customer added 10 times or even 20 times the high leverage, in the face of huge price fluctuations, because the system is down can not choose to stop the loss or cover the position, can only be forced to blow up the position, and ultimately lost a lot of money, or even lost. Over time, the two platforms switch roles and repeat the trick, with the former manipulating prices and the latter crashing to encroach on customer property.

According to the investigation, a large virtual currency trading platform experienced six system outages in one year, three of which were sudden outages, and the platform admitted to two outages. At present, there have been many cases in which the virtual currency platform failed to log in and the interests of contract investors were damaged.

Routine three: use the characteristics of anonymity and decentralization of virtual currency to launder money for criminals

The virtual currency represented by bitcoin has become an accomplice of money laundering for criminals due to its anonymity and global characteristics, and has great social risks. In the case of easton, easton tried to transfer funds through a bitcoin trading platform after making illegal profits of more than 2 billion yuan in domestic stock index futures, but failed due to the large scale and the inability to provide complete certification materials.

Routine 4: the project party and the trading platform are "as one", with a team dedicated to "pull dish and smash dish"

It's not just the platforms that collude. A reporter from the Beijing news found that some project partners and trading platforms are "like one".

A number of trading platform staff told reporters that the trading platform will require the project party to conduct "market value management", similar to the stock market "pull, crash. Some new projects that come online are required to fluctuate in value by buying and selling, or there will be no further buyers. The packaging and publicity of new projects is more important, marketing means must have innovation, the popular "resonance" and other ways of raising money hot spot must want to rub, circle evaluation "subject very sexy" project will rise.

Trading also requires "rigorous planning". Although from the secondary market to buy a lot of can pull dish, but how to ship (that is, "sell currency"), it is necessary to match the rhythm of the project side. In the process of shipment, the project side should announce some good news, such as repurchase, node lock the warehouse, the main network is launched, in the market attention, everyone is willing to buy, the market value management team can ship.

Routine five: new financing method line, pull head suspected of pyramid selling

The rate of "innovation" in financing methods is also fast.

An investigation by a reporter from the Beijing news found that IMO is one of the most popular ways to raise money illegally. IMO (Initial Miner Offering) refers to the Initial issuance of tokens through the sale of hardware/mining machines. Such projects have been outlawed by law, and a new variant of IMO, "Initial Model Offering", has become popular. In this model, subscribers need to "pull the head" if they want to sell their virtual currency as quickly as possible and get a higher profit. Investigations by journalists have found that investors calling themselves "students" have even joined in.

Bitcoin mainland, OKex, coinan and other virtual currency trading platforms are also eyeing virtual currency wealth management products, whose prototypes resemble yu 'ebao and index funds in traditional financial markets. Another popular mode of financial management is "staking", which is similar to the traditional stock market dividend, represented by FCoin. The personage inside course of study expresses, fictitious money manages money to be possible to encounter the risk such as black box operation, trade platform runs road.

Routine 6: trading platform with "foreign account"

At present, many trading platforms and project parties have emphasized to users in foreign countries that there is no operational risk. Many trading platforms have moved their registration centers to seychelles, cayman, Singapore and other countries, and domestic companies, including huoyuan, are not involved in the currency.

According to xiao sa, director of the bank of China law studies institute, the most common practice for many would-be issuers is to sell their COINS to Chinese people via a "foreign hukou", a server set up in a foreign country, and a "road show" in China. Since China does not recognise dual nationalities, the so-called "foreign hukou" does not affect Chinese law against illegal activities. But if the actual issuer is a Chinese national and IC0 and other financing targets are Chinese people, such financing is considered illegal.

The original address: http://www.bjnews.com.cn/finance/2020/03/25/708924.html

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia