Topic: Comprised Poloniex accounts being used to manipulate the market (Read 439 times)

I have had a conversation with another person who's account was also compromised at a similar time and left with nothing but a few Bitcoin Dark. However, I guess it is impossible to prove that it happened without access to the trading information of the other accounts affected however the timestamps of the unauthorized trades on my account line up with a time where that coin was suddenly seeing swings of almost 50% of the coins value every 5 minutes.

Poloniex is facing different issues for a quite period of time now and this is one in a row. But I'm sure they will react if you pass them information through customer support. Scams are appearing more and more often and in more complex and sofisticated forms. Security is something we,should all work on.

I`m pretty sure that Poloniex customer support has the power to block all the trades coming from
your compromised account.Did you contact customer suppport or you think that Poloniex has something to do with this?
Some altcoins with low trading volume can be easliy manipulated and this is a very nasty scam.
If you think that there are thousands of hacked accounts used for price manipulation do you have any evidence to proove your claims?

I'm new here and I'm fairly new to crypto, however I found something odd and I'm not sure who to make aware of this so I'll just post it here.

Recently, my Poloniex account was compromised. It was likely as a result of a lapse in my judgement, but that isn't the issue. There were no withdrawals, just a series of trades buying really high and selling really low, as if someone was intentionally wasting my coins because they could not withdraw them. However, when looking further into the trades it was clear what was happening. A single party gained access to enough compromised accounts that they pooled their collective buying power together to manipulate the poloniex BTCD/XMR Market for the benefit of the hacker. Here are images of the unauthorized trades that occurred on my account and images of the market at that time.

https://i.imgur.com/Qu3KDGr.png

https://i.gyazo.com/abca78af587383ecd21ec76a62563d54.png

As you can see, on the 18th of June (and possibly on the 17th) a market that normally sees small volumes and even smaller sudden price swings begins seeing a volume of over 200 BTCD flow through at the exact time my compromised account began making a series of trades selling low and buying high. From the image above you can see the trades my compromised account made did not come close to matching the amount that was suddenly pumped into and taken out of the market, it must have been a coordinated event. A large number of compromised accounts were exploited to sell their currency very low and buy currency very high so that the hacker could manipulate the market and funnel the assets from the compromised accounts which could not be withdrawn from without email verification to a different account.

I assume this is small in the grand scheme of things, however it really exposes a problem with Poloniex that needs to be addressed before it affects another, much larger market.