Bitcoin Price Manipulation by Bots Confirmed

According to "Price Manipulation in the Bitcoin Ecosystem" research, Mt Gox bots Willy and Markus "pumped" Bitcoin price from $150 to $1000 in few months
16 January 2018   777

Researchers from the Tel Aviv University and the American University of Tulsa confirmed information that at the infamous Mt Gox stock exchange fraud was conducted with the help of bots Willy and Markus.

The study "Price Manipulation in the Bitcoin Ecosystem" was published in the Journal of Monetary Economics. The authors of the work analyzed the impact on the bitcoin rate of suspicious activity on the Mt.Gox exchange, as a result of which the value of the crypto currency in just two months increased from $ 150 to $ 1000. Then, fraudulent transactions were made with 600,000 for a total of $ 188 million.

Bots Willy and Markus conducted externally real deals, but they didn't "own" bitcoins. Nevertheless, they influenced the price of the crypto currency, stimulating the growth of trading volume on other exchanges.

Even in case of detection and cancellation of fraudulent transactions, the average trading volume on the exchanges increased. Therefore, in days of increased activity of bots, the rate of bitcoin to the dollar increased by an average of 4%. At all other times he, on the contrary, showed a slight decrease.

Since the MtGox exchange charged commission from each transaction, the increase in the volume of trading was also profitable for it. In addition, the researchers indirectly link the Willy bot with the attempts of the owner of MtGox Mark Karpeles to hide the losses from the theft of 650,000 bitcoins.

Willy was first seen in September 2013 and operated until the end of January 2014, buying about 100 BTC per hour at intervals of 5-10 minutes. A month earlier, the bitcoin price reached its first loud maximum. 

iPayment to cooperate with Aliant Payment Systems

iPayment, Inc., a payment provider for small and medium-sized businesses (SMBs), today announced a partnership with Aliant Payment Systems
23 May 2018   73

This new partnership will allow iPayment to facilitate digital currency acceptance for merchants and their channel partners. 

Our goal at Aliant is to be one of the first adopters and facilitators of cryptocurrency in the traditional payments space. Partnering with an established, quality organization like iPayment helps us achieve that goal. We are looking forward to mutually moving into a new territory of block chain and cryptocurrency and providing our shared clients with an alternative form of accepting and processing secure, cost-effective payment transactions.
Eric Brown
Founder, CEO, Aliant Payment Systems, Inc.

Aliant Payment’s Crypto Processing Gateway provides merchants with the possibility  to accept cryptocurrencies like Bitcoin or Litecoin, in both digital and card-present environments.

The payments landscape is always changing. iPayment is continually pursuing partnerships with organizations that not only anticipate these changes, but develop innovative solutions to address them – and that is exactly what Aliant has done. We’re looking forward to cultivating this partnership and introducing crypto payment acceptance to our channel partners and adding it to our overall product offering.
Denise Tahali
Senior Vice President, Partner Sales, iPayment, Inc. 

From this new product innovation, iPayment is aimed on small business enablement and delivering efficient services and resolves for business developments. Aliant also lets e-commerce and mobile vendors worldwide to adopt different payment forms, and it provides a complete line of credit card machines, ATMs and payment technology. 

With the help of this collaboration, iPayment can now supply Aliant’s Crypto Processing Gateway to partners and merchants who wish to accept these forms of digital payments.