Was flashcrash orchestrated to get around MtGox withdrawal limit?

iCEBREAKER

legendary

Activity: 2156

Merit: 1072

Crypto is the separation of Power and State.

Quote from: lizthegrey on June 19, 2011, 07:53:29 PM

Seems like the simplest defense against this would be to use a moving average to base the withdraw limits off.

That would be the 2nd simplest defense.

The most simple defense would be a circuit-breaker that automatically halts trading in the event of a flash crash or other anomalous event.

I'm absolutely sure that I'm the very first one to suggest that MtGox and the rest implement this.

*files with patent office*

BeeCee1

member

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Quote from: shads on June 19, 2011, 08:04:28 PM

No hadn't read it, woke up about a hour ago and there was a lot of threads to go through...

That's ok, the irony is that while I was writing that someone else posted the moving average idea and I inadvertently repeated it. I guess these ideas aren't as novel as we think they are.

shads

sr. member

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No hadn't read it, woke up about a hour ago and there was a lot of threads to go through...

BeeCee1

member

Activity: 115

Merit: 10

Quote from: shads on June 19, 2011, 07:41:00 PM

Hacker steals x thousand BTC.
Hacker tries to withdraw and hits limit $1k USD limit.
Hacker starts dumping BTC to crash price.
Number of bitcoins he can withdraw equivalent to under $1k USD increases dramatically.
Hacker withdraws all remaining BTC.

I wish I'd thought of that. Oh wait, I did. http://forum.bitcoin.org/index.php?topic=19672.msg246725#msg246725 (Not sure that you read that post though.)

Clearly, that $1,000 withdraw limit for bitcoins should use some sort of moving average price, maybe over 7 days or so.

lizthegrey

newbie

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Seems like the simplest defense against this would be to use a moving average to base the withdraw limits off.

grue

legendary

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Merit: 1452

obviously

flug

sr. member

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aaaaahhhhhhhhhhhhhhhhhhhhhhhhhhh!!!!!

imperi

full member

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It could have been an attempt to do this, yes.

shads

sr. member

Activity: 266

Merit: 254

Hacker steals x thousand BTC.
Hacker tries to withdraw and hits limit $1k USD limit.
Hacker starts dumping BTC to crash price.
Number of bitcoins he can withdraw equivalent to under $1k USD increases dramatically.
Hacker withdraws all remaining BTC.

Topic: Was flashcrash orchestrated to get around MtGox withdrawal limit? (Read 1771 times)