Mt.Gox liquidation compensation date postponed again, why is Bitcoin always full of fraud?

According to the latest news on October 15, the submission date of the Mt.Gox ("Mentougou") liquidation compensation plan, which was originally scheduled to be submitted today, has been postponed again to December 15, 2020. The reason is that the trustee of the Mt.Gox exchange, Nobuaki Kobayashi, proposed a motion that it is necessary to continue to extend the submission deadline of the liquidation compensation plan, and it has been approved by the Tokyo District Court.

The "Mentougou" incident, the first leeks plate in the cryptocurrency circle

Mt.Gox was the world's largest online trading platform in the early days of Bitcoin, headquartered in Tokyo, Japan. Its full name is "Magic The Gathering Online eXchange". As it happened to be the dividend period when the value of Bitcoin was just recognized by the society, Mt.Gox's trading volume once accounted for 80% of the entire Bitcoin network. Investors in the cryptocurrency circle around the world regarded it as the most important online storage and trading platform for Bitcoin.

In February 2014, the once-popular Mt.Gox suddenly stopped trading services, and soon after, it was revealed that a large number of bitcoins belonging to users were stolen. The platform operator filed for bankruptcy protection that month, causing countless cryptocurrency investors to lose all their money. According to public information on the Internet, the total amount of bitcoins lost by Mt.Gox was 850,000; except for the 100,000 bitcoins owned by the platform, the remaining 750,000 bitcoins were all user assets.

The direct economic losses caused by the Mentougou incident to users exceeded US$475 million at the time (the market price of Bitcoin was only US$400 per coin at the time). Since then, the price of the currency has skyrocketed, even exceeding US$20,000 per coin at its peak. The actual losses of users are incalculable.

The secret operation of digital currency trading platforms has become popular since then

Also in 2014, technology geeks who were unwilling to lose their assets successively hacked into the Mt.Gox official website and the personal blog of its CEO, and then found signs that someone at Mt.Gox had hidden Bitcoins. The exposure of this news caused the already shaky Bitcoin market to fall to a freezing point, and the concept of decentralized technology was also cast with a shadow of insecurity.

On the one hand, Bitcoin, which is based on decentralization as its core mechanism, has the characteristics of high anonymity and real-time cross-border circulation. In addition, account registration does not require the endorsement of valid ID documents, making it almost impossible to trace the real recipient. On the other hand, the vast majority of digital currency trading platforms are centralized websites with "one server + multiple clients" - the operator has the highest authority and can fabricate data to create false prosperity. After deceiving users into investing in digital currency assets, they plunder user assets by plugging pins, unplugging network cables, and directly running away.

According to a virtual currency trading warning article released on the official WeChat public account of the People's Bank of China in March this year, the average turnover rates of the top three overseas virtual currency traders were 13.25%, 8.33% and 6.15% respectively, all higher than the average turnover rate of 2.37% of foreign licensed exchanges, 5.6 times, 3.25 times and 2.6 times higher respectively, and there is a strong suspicion of using robots to increase trading volume.

In addition to creating fake transactions and luring investors into the market, some trading platforms also manipulate the market by maliciously shutting down and forcing leveraged transactions to go bankrupt. It can be seen that the adverse impact caused by the Mentougou incident is ravaging the cryptocurrency circle in a wide and far-reaching manner.