Mt. Gox Faked Bitcoin Price Inflation in December 2013, Indicates Willy Report


Mt. Gox Faked Bitcoin Price Inflation in December 2013, Indicates Willy Report – Was the Bitcoin price actually deserving to reach the $1,000 mark, or was it just a staged drama led by the controversially demised Bitcoin exchange Mt. Gox to fool people into buying the coin in greater prices before turning themselves “off”? The commendably written Willy Report raises the same question, which we all somehow overlooked in our attempts to glorify or condemn Bitcoin’s successes and failures in previous months.

The Willy Report (see here), inaugurates a new debate inside the cryptocurrency sector, with an aim to prove how easily a Bitcoin market can be driven by a set of mongers. It turns out that December’s sudden surge in Bitcoin prices (from $200 to over $1,000) took place not just because of the Silk Road, China, or a much larger acceptance, but mostly because someone (or many) were simply manipulating the coin’s trading bots.


And it is not just a baseless claim presented by some random blogger, but is actually a well-structured evidence-based report that smartly points out the anonymous people to be blamed for Bitcoin’s sudden rise, right before the Mt. Gox fall. Coincidence? Hard to tell.

The Wily Report revolves around two trading bots: Willy and Markus that are suspected of performing suspicious trades during the rise of Bitcoin in late 2013. The bots jointly purchased over 270,000 Bitcoins in around $112 million by taking turns. When one user was inactive, the other took its place – making sure that the purchasing never halts. Incidentally, they never sell even a single Bitcoin during their tenure.

What is more shocking, according to the report, is the extreme anonymity of these bots. The blogger sheds some light over this and writes, “I noticed here that all of these accounts had one thing in common; the User_Country and User_State field both had “??” as entry. This was unusual. Normally, these fields contained country/state FIPS codes (for verified users?), nothing (unverified users?), or “!!” (Users who failed verification or suspicious users?).”

And this gets even further worse. The report speaks of one of the trading bots Markus whose user ID was changed to 634 (facts available in the log sheets posted in the report). Incidentally or accidentally, this number is owned by the name “MagicalTux”, who is none other than the Mt. Gox CEO Mark Karpeles. This is where when ‘The Wily Report’ speaks of a possibility of an inside job.

What can We Take from the Report?

Cryptocurrency exchanges manipulating the prices are indeed not a new thing. But knowing the substantial amount of money stolen from people during an unconvinced attack on Mt. Gox, The Willy Report resurfaces the lost grounds and hopes of those who are still looking for their hard earned bucks. Although, further investigations will likely review this report in the future and it would be too soon to predict the actuality of te whole scandal, but it would be safe to say that there was indeed a “scandal”, not just an unfortunate attack.

To contact the reporter of the story: Yashu Gola at

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