October 11, 2024 • 13 mins
Today : E042-2024 Cyberium Podcast - Legal Action Against Gotbit etc by Antonio ROSSI.
ENGLISH PODCASTS : https://technocratico.it/cyberium-podcast/
In each episode, we dive into articles published on technocratico.it by Raffaele Di Marzio or explore his reflections brought to life through AI analysis and techniques, powered by Gemini Pro, which present in-depth discussions in English, explaining the topics in a simple and concise manner. Our mission is to reveal, in a straightforward yet precise way, how technology influences every aspect of our personal and professional lives. Whether you're a tech industry professional seeking expert insights or a curious listener wanting to understand how digital security impacts your daily life, Cyberium is your gateway to comprehending the holistic influence of technology, offering a unique perspective thanks to the integration of cutting-edge AI analysis.
Today, we'll be exploring a cutting-edge topic in the Legal Action Against Gotbit etc
To guide us through this analysis, we'll be relying on the insights of Antonio Rossi
Tune in to gain valuable perspectives and stay ahead in the rapidly evolving tech landscape.
All reproductions rights are reserved by Cyberium Media Miami Productions and Technocratico.it
Content Creator Direction : Raffaele DI MARZIO https://www.linkedin.com/in/raffaeledimarzio/
Content Creator : Antonio Rossi https://www.linkedin.com/in/antoniorossi/
For inquiries, you can reach us at podcast@cyberium.media
ENGLISH PODCASTS : https://technocratico.it/cyberium-podcast/
In each episode, we dive into articles published on technocratico.it by Raffaele Di Marzio or explore his reflections brought to life through AI analysis and techniques, powered by Gemini Pro, which present in-depth discussions in English, explaining the topics in a simple and concise manner. Our mission is to reveal, in a straightforward yet precise way, how technology influences every aspect of our personal and professional lives. Whether you're a tech industry professional seeking expert insights or a curious listener wanting to understand how digital security impacts your daily life, Cyberium is your gateway to comprehending the holistic influence of technology, offering a unique perspective thanks to the integration of cutting-edge AI analysis.
Today, we'll be exploring a cutting-edge topic in the Legal Action Against Gotbit etc
To guide us through this analysis, we'll be relying on the insights of Antonio Rossi
Tune in to gain valuable perspectives and stay ahead in the rapidly evolving tech landscape.
All reproductions rights are reserved by Cyberium Media Miami Productions and Technocratico.it
Content Creator Direction : Raffaele DI MARZIO https://www.linkedin.com/in/raffaeledimarzio/
Content Creator : Antonio Rossi https://www.linkedin.com/in/antoniorossi/
For inquiries, you can reach us at podcast@cyberium.media
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome to Siberian. Here, technology and cybersecurity are made simple
for everyone. Whether you're a tech geek or just curious
about the digital world, we've got you covered. Each episode
we dive into the latest topics from technocratico, dot it
and break them down so you can stay informed and protected.
Speaker 2 (00:23):
This is a.
Speaker 1 (00:23):
Siberian Media Miami production. Let's get into it.
Speaker 3 (00:28):
The scaber gulsis flame. Make us a blood back fave,
to love it, to fuck its holess, see usselves and
remember this.
Speaker 4 (00:48):
In this episode, we analyze another topic proposed by Antonio Rossi.
Antonio is a senior expert and frequently speaks at various
conferences focusing on information and communication technology in blockchain environments.
His experience today guides us in exploring legal action against
god Bid, et cetera, offering a unique perspective. Let's begin
(01:10):
this stimulating discussion.
Speaker 3 (01:14):
Okay, so maybe you're thinking about dipping your toes into cryptocurrency.
Speaker 2 (01:17):
But you keep hearing these stories about market manipulation and
it's got you a little spooked.
Speaker 3 (01:22):
Right, Yeah, understandably. So it's a legitimate concern, it really.
Speaker 2 (01:26):
Is, And honestly, it's a story that anyone who cares
about fairness. Whether they're into crypto or not, should.
Speaker 3 (01:32):
Hear one hundred percent because what we're talking about here
isn't just a few bad actors in an otherwise healthy system.
Speaker 2 (01:39):
Exactly this case, it exposes vulnerabilities that exist everywhere in
the traditional financial system in crypto.
Speaker 3 (01:46):
I mean, look, anywhere there's money.
Speaker 2 (01:48):
To be made, there's always going to be someone trying
to game the system, trying to rig it in their favor.
Speaker 3 (01:53):
It's a tale as old as time.
Speaker 2 (01:55):
Unfortunately, and this time the players are four firms, got BITZM, WANT,
CLS Global and My Trade.
Speaker 3 (02:02):
And the accusations are serious. We're talking about manipulating cryptocurrency
prices artificially inflating trading volumes.
Speaker 2 (02:10):
And when we say serious, we mean it. The SEC
and the DOJ are involved.
Speaker 3 (02:14):
Big guns. This is not something they're taking lightly, not
at all.
Speaker 2 (02:18):
So let's break it down. One of the big accusations
is something called wash trading. Have you heard of this?
Speaker 3 (02:24):
I have. Yeah. It's basically creating the illusion of activity exactly.
Speaker 2 (02:29):
Imagine someone buying and selling the same thing over and
over again to themselves, right, just to.
Speaker 3 (02:34):
Make it look like there's more demand than there actually is.
Speaker 2 (02:36):
Like trying to create a buzz out of thin air.
Speaker 3 (02:39):
Exactly. It's misleading and.
Speaker 2 (02:41):
It's illegal, and it's not just some theoretical thing either.
We're talking about real people.
Speaker 3 (02:46):
Authorities have named Federick Kedrov from GOTPID and by June
ou from ZM quant as being directly involved.
Speaker 2 (02:53):
Directly involved, and get this, they've already recovered twenty five
million dollars.
Speaker 3 (02:57):
Twenty five million, wow, And.
Speaker 2 (02:58):
That's just what they've mane to claw back so far.
It really makes you wonder how deep this rabbit hole goes.
Speaker 3 (03:04):
It does, and it makes you think about all the
people who might have been affected by this without even
realizing it.
Speaker 2 (03:09):
Exactly, because we're not talking about some obscure corner of
the crypto market here. They were allegedly manipulating tokens like roboenu,
VZZN and sitoma tokens.
Speaker 3 (03:20):
It everyday people are putting their savings into, hoping to.
Speaker 2 (03:23):
See a return, and that's where the real harm is.
When you have this kind of manipulation, it just erodes
trust in the entire system.
Speaker 3 (03:31):
It creates a climate of fear and uncertainty.
Speaker 2 (03:34):
People become afraid to invest, Innovation gets stifled, and Ultimately
everyone loses.
Speaker 3 (03:41):
It's a lose lose situation. So if we want to
see crypto reach its full potential, we need to root
out this kind of behavior.
Speaker 2 (03:48):
Absolutely. So we've established that wash trading is bad news, but.
Speaker 3 (03:52):
How exactly does it work. Let's peel back the layers
and take a closer look at the mechanics of this
deceptive tactic. I'm all ears So with wash trading, it's
all about creating an illusion. Right. They use multiple trading accounts.
Speaker 2 (04:05):
Okay, so they are controlling more than one account at
a time.
Speaker 3 (04:08):
Yeah, often controlled by the same entity, to make it
look like there's way more buying and selling going on
than there actually is.
Speaker 2 (04:14):
So it's all fake exactly.
Speaker 3 (04:15):
It's like creating a mirage in the desert. Yeah, you know,
you think you see this oasis.
Speaker 2 (04:19):
Of trading volume, but it's really just a trick of
the light, exactly.
Speaker 3 (04:22):
And the thing is the price of these cryptocurrencies, it's
often driven by algorithms, and.
Speaker 2 (04:27):
Those algorithms they see all this fake volume.
Speaker 3 (04:31):
They get fooled. Basically, they think something big is happening
and they push the price up.
Speaker 2 (04:35):
So these manipulators, they're playing both sides of the game.
Speaker 3 (04:37):
That's it. They pump up the price with this fake volume,
and then they just wait for unsuspecting investors to take.
Speaker 2 (04:44):
The bait, who see the price going up and think
they're going to miss out on the next big thing.
Speaker 3 (04:48):
Fear of missing out. That's a powerful motivator, right, it
really is.
Speaker 2 (04:51):
So they buy in thinking they're getting in early, but
really they're buying at these artificially inflated prices.
Speaker 3 (04:56):
And then once these manipulators they've sucked in enough, people
pull the rug out exactly. They sell off everything, often
very quickly and in huge amounts, and of course the
price plummets.
Speaker 2 (05:08):
And everyone who fell for it is left holding the bag.
Speaker 3 (05:11):
It's the classic pump and dumb scheme, but in the
crypto world it happens so.
Speaker 2 (05:15):
Much faster because everything moves so quickly in the crypto space, right, it's.
Speaker 3 (05:20):
Like the wild West. Other and you mentioned earlier that
some exchanges actually make this worse with these fee rebates.
Speaker 2 (05:26):
Yeah, for high volume trading, it's.
Speaker 3 (05:27):
Like they're incentivizing this kind of manipulative behavior.
Speaker 2 (05:30):
It's crazy. So it sounds like they are complicit.
Speaker 3 (05:33):
It's complicated. They argue that these fees they're necessary to
attract investors to encourage trading activity.
Speaker 2 (05:41):
But it's clear that these policies can be exploited.
Speaker 3 (05:44):
Absolutely, we need stricter regulations, stronger oversight.
Speaker 2 (05:48):
To protect investors and ensure that the market is.
Speaker 3 (05:50):
Fair one hundred percent. Yeah, but wash trading, that's just
one tactic these manipulators use.
Speaker 2 (05:55):
Right, What are some of the other ways they create
this illusion of demand and drive up prices.
Speaker 3 (06:01):
Well, it all comes down to information, or more specifically misinformation.
Speaker 2 (06:06):
Okay, I'm intrigued. Tell me more.
Speaker 3 (06:08):
They spread rumors, you know, hype up partnerships that don't exist,
use social media influencers to promote certain token.
Speaker 2 (06:14):
And they probably own a bunch of those tokens already.
Speaker 3 (06:16):
You got it. It's all about manipulating people's perceptions.
Speaker 2 (06:20):
So it's not just about gaming the algorithms, it's about
gaming human psychology.
Speaker 3 (06:24):
Absolutely yeah. And social media that's the perfect breeding ground
for this kind.
Speaker 2 (06:29):
Of manipulation because it's so easy to create these echo
chambers where people just see what they want to see, right, and.
Speaker 3 (06:35):
They get caught up in the hype without stopping to
think critically about what they're seeing.
Speaker 1 (06:40):
It's scary how effective it can be.
Speaker 3 (06:42):
It really is, and we're not just talking about a
few random people on Twitter.
Speaker 2 (06:46):
You mean this is organized?
Speaker 3 (06:47):
Oh yeah. There are large, well funded groups out there.
Speaker 2 (06:51):
With sophisticated networks of bots and fake accounts to amplify.
Speaker 3 (06:55):
Their message exactly, and they target specific groups with tailored messaging,
praying on their hopes and fears. It's like a digital
version of those old boiler room.
Speaker 2 (07:05):
Scams, but on a much larger scale and much harder
to shut down. It makes you wonder how regulators can
possibly keep up. What about this spoofing that you mentioned,
Can you walk me through how that works?
Speaker 3 (07:16):
Sure? Imagine you're looking at the order book for a
cryptocurrency on an exchange. This shows you all the buy
and sell orders.
Speaker 2 (07:24):
So you can see the supply and demand for that
asset exactly.
Speaker 3 (07:27):
Now, with spoofing, what these manipulators do is place large
buy or sell orders that they have no intention of
actually filling.
Speaker 2 (07:36):
So they're basically putting up a front making it look
like there's more demand or supply than there actually is.
Speaker 3 (07:41):
Precisely, it's another mirage, and these big spoofed orders they
trick other traders into thinking the price is about to make.
Speaker 2 (07:49):
A big move because they see this massive by order,
for example, and think the price is about to skyrocket exactly.
Speaker 3 (07:55):
They panic and buy in, hoping to get in before
it's too late, And as soon as the price moves
in the direction they want, boom, these manipulators cancel their
spoofed orders and disappear.
Speaker 2 (08:05):
It's unbelievable how much manipulation is going on. It makes
you wonder if you can trust anything you see on
these exchanges.
Speaker 3 (08:11):
It's a valid concern, for sure, But that's why it's
so important to talk about it to raise.
Speaker 2 (08:15):
Awareness, because knowledge is power, right. The more people know
about these tactics, the less likely they are to fall victim.
But all this manipulation, it's not just some victimless crime.
What are the real world consequences for everyday people?
Speaker 3 (08:29):
Well, for starters, it costs people money. When prices are
artificially inflated, people buy assets that are actually worth far less,
and when the bubble bursts, they lose their savings.
Speaker 2 (08:39):
And then there's the impact on the market as unfold.
Speaker 3 (08:41):
Absolutely, when people believe the market is rigged, they're less
likely to invest, and that stifles innovation and growth.
Speaker 2 (08:48):
It creates this vicious cycle because the lack of trust
and transparency leads to calls for more regulation.
Speaker 3 (08:54):
Which ironically could end up stifling the very innovation that
makes crypto so exciting in the first place.
Speaker 2 (08:59):
It's a tough balancing act. So this case against got bit, ZM, quant,
CLS Global and my Trade, which.
Speaker 3 (09:06):
By the way is officially case number twenty four, is
CR one zero one eighty seven.
Speaker 2 (09:10):
Right, This case is a big deal, isn't it It is.
Speaker 3 (09:13):
It sends a clear message that authorities are taking market
manipulation in the crypto space seriously.
Speaker 2 (09:18):
They are cracking demo.
Speaker 3 (09:19):
Yes, and it's a good thing. But we have to
remember we only know about the cases that are caught.
The decentralized and often anonymous nature of crypto makes it
very difficult to track these manipulators down.
Speaker 2 (09:32):
So for every case like this, there are likely many
more that go undetected.
Speaker 3 (09:36):
Most likely and remember, the authorities were able to recover
twenty five million dollars.
Speaker 2 (09:40):
Wow, what were the tokens again that those firms were manipulating.
Speaker 3 (09:44):
They were allegedly manipulating tokens like roboenu, VZZN and cytoma,
tokens that everyday people were putting their savings into.
Speaker 2 (09:52):
It's a wake up call for sure.
Speaker 3 (09:53):
It really is. And you know knowledge is power.
Speaker 2 (09:56):
Absolutely, so let's talk about that. What are some red
flags people should watch out for. How can you tell
if the project might be shady?
Speaker 3 (10:03):
Well, one of the biggest ones is hype without substance.
Speaker 2 (10:06):
Okay, so like big promises but no real way to
back them up exactly.
Speaker 3 (10:11):
If there's no clear plan, no solid team behind it,
no evidence.
Speaker 2 (10:14):
That's a big red flag.
Speaker 3 (10:16):
Huge. Another thing is always check if the project has
a white paper.
Speaker 2 (10:20):
A white paper, Yeah.
Speaker 3 (10:21):
It's basically a document that outlines the project's goals. It's technology.
Speaker 2 (10:25):
Oh okay, so you're saying, don't just take their word
for it, actually read.
Speaker 3 (10:28):
About it exactly and more importantly, make sure you understand it.
Does their tech make sense, who's on the team, what's
their track record.
Speaker 2 (10:37):
It's like doing your due diligence before you invest in
anything else.
Speaker 3 (10:40):
Exactly, and be wary of projects with anonymous founders. Transparency
is key.
Speaker 2 (10:45):
So how do you navigate the world of social media
because it's easy to get caught up in the hype there.
Speaker 3 (10:51):
Social media can be great for research, but you got
to be careful don't believe everything you read, look for
independent sources you know, compared to from perspectives, and don't
be afraid to ask questions.
Speaker 2 (11:03):
If something sounds too good to.
Speaker 3 (11:04):
Be true, it probably is guaranteed returns, pressure to invest quickly.
Speaker 2 (11:09):
Those are all red flags.
Speaker 3 (11:10):
Massive red flags. It's just like those old investment scams,
but with a new code of.
Speaker 2 (11:14):
Paint, right, because at the end of the day, a
scam is a scam exactly.
Speaker 3 (11:18):
So what can we do about it? Is it just
a matter of buyers beware.
Speaker 2 (11:23):
Well, that's part of it, right, But it can't just
be on individuals to protect themselves.
Speaker 3 (11:27):
No, definitely not. We need regulators to step up their
game and force existing laws, maybe even create new ones
specifically for crypto because.
Speaker 2 (11:35):
It is such a unique animal.
Speaker 3 (11:37):
Right. But regulation alone won't solve everything. Education is key too, So.
Speaker 2 (11:42):
People need to be informed, they need to know what to.
Speaker 3 (11:44):
Look for exactly. The more people understand about these scams,
the harder it is for the manipulators to succeed.
Speaker 2 (11:51):
It's about empowering individuals to make smart decisions.
Speaker 3 (11:54):
One hundred percent. And you know, it's also about fostering
a culture of ethical behavior within the crypt community itself.
Speaker 2 (12:01):
So it's a collective effort.
Speaker 3 (12:02):
Absolutely, we need whistleblowers to feel safe to come forward.
Exchanges need to be more proactive about shutting down this
manipulative activity.
Speaker 2 (12:11):
It sounds like we all have a part to play
in creating a safer, more transparent crypto ecosystem.
Speaker 3 (12:16):
We do, and while the challenges are real, I'm still
optimistic about the future of crypto me too.
Speaker 2 (12:21):
I mean, this technology has so much potential.
Speaker 3 (12:23):
It really does. It could revolutionize finance, empower individuals in
ways we haven't even thought of yet.
Speaker 2 (12:29):
But with great potential comes great responsibility.
Speaker 3 (12:32):
Couldn't agree more Well.
Speaker 2 (12:33):
Thanks for taking this deep dive with us today. Hopefully
everyone listening now has a better understanding of the opportunities
and of course, the risks of the crypto world.
Speaker 3 (12:42):
High pleasure.
Speaker 2 (12:42):
It was great having you, and remember everyone, stay informed,
stay vigilant, and as always, invest wisely. Sounds Loves Solves
who you go it to.
Speaker 3 (12:57):
Craw All reproduction rights are reserved by Siberium Media, Miami
Production and Technocratico dot It. For inquiries, you can reach
us at podcasts at Siberium dot Media.
Welcome to Siberian. Here, technology and cybersecurity are made simple
for everyone. Whether you're a tech geek or just curious
about the digital world, we've got you covered. Each episode
we dive into the latest topics from technocratico, dot it
and break them down so you can stay informed and protected.
Speaker 2 (00:23):
This is a.
Speaker 1 (00:23):
Siberian Media Miami production. Let's get into it.
Speaker 3 (00:28):
The scaber gulsis flame. Make us a blood back fave,
to love it, to fuck its holess, see usselves and
remember this.
Speaker 4 (00:48):
In this episode, we analyze another topic proposed by Antonio Rossi.
Antonio is a senior expert and frequently speaks at various
conferences focusing on information and communication technology in blockchain environments.
His experience today guides us in exploring legal action against
god Bid, et cetera, offering a unique perspective. Let's begin
(01:10):
this stimulating discussion.
Speaker 3 (01:14):
Okay, so maybe you're thinking about dipping your toes into cryptocurrency.
Speaker 2 (01:17):
But you keep hearing these stories about market manipulation and
it's got you a little spooked.
Speaker 3 (01:22):
Right, Yeah, understandably. So it's a legitimate concern, it really.
Speaker 2 (01:26):
Is, And honestly, it's a story that anyone who cares
about fairness. Whether they're into crypto or not, should.
Speaker 3 (01:32):
Hear one hundred percent because what we're talking about here
isn't just a few bad actors in an otherwise healthy system.
Speaker 2 (01:39):
Exactly this case, it exposes vulnerabilities that exist everywhere in
the traditional financial system in crypto.
Speaker 3 (01:46):
I mean, look, anywhere there's money.
Speaker 2 (01:48):
To be made, there's always going to be someone trying
to game the system, trying to rig it in their favor.
Speaker 3 (01:53):
It's a tale as old as time.
Speaker 2 (01:55):
Unfortunately, and this time the players are four firms, got BITZM, WANT,
CLS Global and My Trade.
Speaker 3 (02:02):
And the accusations are serious. We're talking about manipulating cryptocurrency
prices artificially inflating trading volumes.
Speaker 2 (02:10):
And when we say serious, we mean it. The SEC
and the DOJ are involved.
Speaker 3 (02:14):
Big guns. This is not something they're taking lightly, not
at all.
Speaker 2 (02:18):
So let's break it down. One of the big accusations
is something called wash trading. Have you heard of this?
Speaker 3 (02:24):
I have. Yeah. It's basically creating the illusion of activity exactly.
Speaker 2 (02:29):
Imagine someone buying and selling the same thing over and
over again to themselves, right, just to.
Speaker 3 (02:34):
Make it look like there's more demand than there actually is.
Speaker 2 (02:36):
Like trying to create a buzz out of thin air.
Speaker 3 (02:39):
Exactly. It's misleading and.
Speaker 2 (02:41):
It's illegal, and it's not just some theoretical thing either.
We're talking about real people.
Speaker 3 (02:46):
Authorities have named Federick Kedrov from GOTPID and by June
ou from ZM quant as being directly involved.
Speaker 2 (02:53):
Directly involved, and get this, they've already recovered twenty five
million dollars.
Speaker 3 (02:57):
Twenty five million, wow, And.
Speaker 2 (02:58):
That's just what they've mane to claw back so far.
It really makes you wonder how deep this rabbit hole goes.
Speaker 3 (03:04):
It does, and it makes you think about all the
people who might have been affected by this without even
realizing it.
Speaker 2 (03:09):
Exactly, because we're not talking about some obscure corner of
the crypto market here. They were allegedly manipulating tokens like roboenu,
VZZN and sitoma tokens.
Speaker 3 (03:20):
It everyday people are putting their savings into, hoping to.
Speaker 2 (03:23):
See a return, and that's where the real harm is.
When you have this kind of manipulation, it just erodes
trust in the entire system.
Speaker 3 (03:31):
It creates a climate of fear and uncertainty.
Speaker 2 (03:34):
People become afraid to invest, Innovation gets stifled, and Ultimately
everyone loses.
Speaker 3 (03:41):
It's a lose lose situation. So if we want to
see crypto reach its full potential, we need to root
out this kind of behavior.
Speaker 2 (03:48):
Absolutely. So we've established that wash trading is bad news, but.
Speaker 3 (03:52):
How exactly does it work. Let's peel back the layers
and take a closer look at the mechanics of this
deceptive tactic. I'm all ears So with wash trading, it's
all about creating an illusion. Right. They use multiple trading accounts.
Speaker 2 (04:05):
Okay, so they are controlling more than one account at
a time.
Speaker 3 (04:08):
Yeah, often controlled by the same entity, to make it
look like there's way more buying and selling going on
than there actually is.
Speaker 2 (04:14):
So it's all fake exactly.
Speaker 3 (04:15):
It's like creating a mirage in the desert. Yeah, you know,
you think you see this oasis.
Speaker 2 (04:19):
Of trading volume, but it's really just a trick of
the light, exactly.
Speaker 3 (04:22):
And the thing is the price of these cryptocurrencies, it's
often driven by algorithms, and.
Speaker 2 (04:27):
Those algorithms they see all this fake volume.
Speaker 3 (04:31):
They get fooled. Basically, they think something big is happening
and they push the price up.
Speaker 2 (04:35):
So these manipulators, they're playing both sides of the game.
Speaker 3 (04:37):
That's it. They pump up the price with this fake volume,
and then they just wait for unsuspecting investors to take.
Speaker 2 (04:44):
The bait, who see the price going up and think
they're going to miss out on the next big thing.
Speaker 3 (04:48):
Fear of missing out. That's a powerful motivator, right, it
really is.
Speaker 2 (04:51):
So they buy in thinking they're getting in early, but
really they're buying at these artificially inflated prices.
Speaker 3 (04:56):
And then once these manipulators they've sucked in enough, people
pull the rug out exactly. They sell off everything, often
very quickly and in huge amounts, and of course the
price plummets.
Speaker 2 (05:08):
And everyone who fell for it is left holding the bag.
Speaker 3 (05:11):
It's the classic pump and dumb scheme, but in the
crypto world it happens so.
Speaker 2 (05:15):
Much faster because everything moves so quickly in the crypto space, right, it's.
Speaker 3 (05:20):
Like the wild West. Other and you mentioned earlier that
some exchanges actually make this worse with these fee rebates.
Speaker 2 (05:26):
Yeah, for high volume trading, it's.
Speaker 3 (05:27):
Like they're incentivizing this kind of manipulative behavior.
Speaker 2 (05:30):
It's crazy. So it sounds like they are complicit.
Speaker 3 (05:33):
It's complicated. They argue that these fees they're necessary to
attract investors to encourage trading activity.
Speaker 2 (05:41):
But it's clear that these policies can be exploited.
Speaker 3 (05:44):
Absolutely, we need stricter regulations, stronger oversight.
Speaker 2 (05:48):
To protect investors and ensure that the market is.
Speaker 3 (05:50):
Fair one hundred percent. Yeah, but wash trading, that's just
one tactic these manipulators use.
Speaker 2 (05:55):
Right, What are some of the other ways they create
this illusion of demand and drive up prices.
Speaker 3 (06:01):
Well, it all comes down to information, or more specifically misinformation.
Speaker 2 (06:06):
Okay, I'm intrigued. Tell me more.
Speaker 3 (06:08):
They spread rumors, you know, hype up partnerships that don't exist,
use social media influencers to promote certain token.
Speaker 2 (06:14):
And they probably own a bunch of those tokens already.
Speaker 3 (06:16):
You got it. It's all about manipulating people's perceptions.
Speaker 2 (06:20):
So it's not just about gaming the algorithms, it's about
gaming human psychology.
Speaker 3 (06:24):
Absolutely yeah. And social media that's the perfect breeding ground
for this kind.
Speaker 2 (06:29):
Of manipulation because it's so easy to create these echo
chambers where people just see what they want to see, right, and.
Speaker 3 (06:35):
They get caught up in the hype without stopping to
think critically about what they're seeing.
Speaker 1 (06:40):
It's scary how effective it can be.
Speaker 3 (06:42):
It really is, and we're not just talking about a
few random people on Twitter.
Speaker 2 (06:46):
You mean this is organized?
Speaker 3 (06:47):
Oh yeah. There are large, well funded groups out there.
Speaker 2 (06:51):
With sophisticated networks of bots and fake accounts to amplify.
Speaker 3 (06:55):
Their message exactly, and they target specific groups with tailored messaging,
praying on their hopes and fears. It's like a digital
version of those old boiler room.
Speaker 2 (07:05):
Scams, but on a much larger scale and much harder
to shut down. It makes you wonder how regulators can
possibly keep up. What about this spoofing that you mentioned,
Can you walk me through how that works?
Speaker 3 (07:16):
Sure? Imagine you're looking at the order book for a
cryptocurrency on an exchange. This shows you all the buy
and sell orders.
Speaker 2 (07:24):
So you can see the supply and demand for that
asset exactly.
Speaker 3 (07:27):
Now, with spoofing, what these manipulators do is place large
buy or sell orders that they have no intention of
actually filling.
Speaker 2 (07:36):
So they're basically putting up a front making it look
like there's more demand or supply than there actually is.
Speaker 3 (07:41):
Precisely, it's another mirage, and these big spoofed orders they
trick other traders into thinking the price is about to make.
Speaker 2 (07:49):
A big move because they see this massive by order,
for example, and think the price is about to skyrocket exactly.
Speaker 3 (07:55):
They panic and buy in, hoping to get in before
it's too late, And as soon as the price moves
in the direction they want, boom, these manipulators cancel their
spoofed orders and disappear.
Speaker 2 (08:05):
It's unbelievable how much manipulation is going on. It makes
you wonder if you can trust anything you see on
these exchanges.
Speaker 3 (08:11):
It's a valid concern, for sure, But that's why it's
so important to talk about it to raise.
Speaker 2 (08:15):
Awareness, because knowledge is power, right. The more people know
about these tactics, the less likely they are to fall victim.
But all this manipulation, it's not just some victimless crime.
What are the real world consequences for everyday people?
Speaker 3 (08:29):
Well, for starters, it costs people money. When prices are
artificially inflated, people buy assets that are actually worth far less,
and when the bubble bursts, they lose their savings.
Speaker 2 (08:39):
And then there's the impact on the market as unfold.
Speaker 3 (08:41):
Absolutely, when people believe the market is rigged, they're less
likely to invest, and that stifles innovation and growth.
Speaker 2 (08:48):
It creates this vicious cycle because the lack of trust
and transparency leads to calls for more regulation.
Speaker 3 (08:54):
Which ironically could end up stifling the very innovation that
makes crypto so exciting in the first place.
Speaker 2 (08:59):
It's a tough balancing act. So this case against got bit, ZM, quant,
CLS Global and my Trade, which.
Speaker 3 (09:06):
By the way is officially case number twenty four, is
CR one zero one eighty seven.
Speaker 2 (09:10):
Right, This case is a big deal, isn't it It is.
Speaker 3 (09:13):
It sends a clear message that authorities are taking market
manipulation in the crypto space seriously.
Speaker 2 (09:18):
They are cracking demo.
Speaker 3 (09:19):
Yes, and it's a good thing. But we have to
remember we only know about the cases that are caught.
The decentralized and often anonymous nature of crypto makes it
very difficult to track these manipulators down.
Speaker 2 (09:32):
So for every case like this, there are likely many
more that go undetected.
Speaker 3 (09:36):
Most likely and remember, the authorities were able to recover
twenty five million dollars.
Speaker 2 (09:40):
Wow, what were the tokens again that those firms were manipulating.
Speaker 3 (09:44):
They were allegedly manipulating tokens like roboenu, VZZN and cytoma,
tokens that everyday people were putting their savings into.
Speaker 2 (09:52):
It's a wake up call for sure.
Speaker 3 (09:53):
It really is. And you know knowledge is power.
Speaker 2 (09:56):
Absolutely, so let's talk about that. What are some red
flags people should watch out for. How can you tell
if the project might be shady?
Speaker 3 (10:03):
Well, one of the biggest ones is hype without substance.
Speaker 2 (10:06):
Okay, so like big promises but no real way to
back them up exactly.
Speaker 3 (10:11):
If there's no clear plan, no solid team behind it,
no evidence.
Speaker 2 (10:14):
That's a big red flag.
Speaker 3 (10:16):
Huge. Another thing is always check if the project has
a white paper.
Speaker 2 (10:20):
A white paper, Yeah.
Speaker 3 (10:21):
It's basically a document that outlines the project's goals. It's technology.
Speaker 2 (10:25):
Oh okay, so you're saying, don't just take their word
for it, actually read.
Speaker 3 (10:28):
About it exactly and more importantly, make sure you understand it.
Does their tech make sense, who's on the team, what's
their track record.
Speaker 2 (10:37):
It's like doing your due diligence before you invest in
anything else.
Speaker 3 (10:40):
Exactly, and be wary of projects with anonymous founders. Transparency
is key.
Speaker 2 (10:45):
So how do you navigate the world of social media
because it's easy to get caught up in the hype there.
Speaker 3 (10:51):
Social media can be great for research, but you got
to be careful don't believe everything you read, look for
independent sources you know, compared to from perspectives, and don't
be afraid to ask questions.
Speaker 2 (11:03):
If something sounds too good to.
Speaker 3 (11:04):
Be true, it probably is guaranteed returns, pressure to invest quickly.
Speaker 2 (11:09):
Those are all red flags.
Speaker 3 (11:10):
Massive red flags. It's just like those old investment scams,
but with a new code of.
Speaker 2 (11:14):
Paint, right, because at the end of the day, a
scam is a scam exactly.
Speaker 3 (11:18):
So what can we do about it? Is it just
a matter of buyers beware.
Speaker 2 (11:23):
Well, that's part of it, right, But it can't just
be on individuals to protect themselves.
Speaker 3 (11:27):
No, definitely not. We need regulators to step up their
game and force existing laws, maybe even create new ones
specifically for crypto because.
Speaker 2 (11:35):
It is such a unique animal.
Speaker 3 (11:37):
Right. But regulation alone won't solve everything. Education is key too, So.
Speaker 2 (11:42):
People need to be informed, they need to know what to.
Speaker 3 (11:44):
Look for exactly. The more people understand about these scams,
the harder it is for the manipulators to succeed.
Speaker 2 (11:51):
It's about empowering individuals to make smart decisions.
Speaker 3 (11:54):
One hundred percent. And you know, it's also about fostering
a culture of ethical behavior within the crypt community itself.
Speaker 2 (12:01):
So it's a collective effort.
Speaker 3 (12:02):
Absolutely, we need whistleblowers to feel safe to come forward.
Exchanges need to be more proactive about shutting down this
manipulative activity.
Speaker 2 (12:11):
It sounds like we all have a part to play
in creating a safer, more transparent crypto ecosystem.
Speaker 3 (12:16):
We do, and while the challenges are real, I'm still
optimistic about the future of crypto me too.
Speaker 2 (12:21):
I mean, this technology has so much potential.
Speaker 3 (12:23):
It really does. It could revolutionize finance, empower individuals in
ways we haven't even thought of yet.
Speaker 2 (12:29):
But with great potential comes great responsibility.
Speaker 3 (12:32):
Couldn't agree more Well.
Speaker 2 (12:33):
Thanks for taking this deep dive with us today. Hopefully
everyone listening now has a better understanding of the opportunities
and of course, the risks of the crypto world.
Speaker 3 (12:42):
High pleasure.
Speaker 2 (12:42):
It was great having you, and remember everyone, stay informed,
stay vigilant, and as always, invest wisely. Sounds Loves Solves
who you go it to.
Speaker 3 (12:57):
Craw All reproduction rights are reserved by Siberium Media, Miami
Production and Technocratico dot It. For inquiries, you can reach
us at podcasts at Siberium dot Media.
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