Cyber Fraud Expert Simon Smith warns of rogue Cryptocurrency trading robots

MELBOURNE, Australia - July 16, 2018 - PRLog -- As a Cyber-security forensic investigator, and blockchain expert, Mr. Smith noticed unusual patterns in the way Cryptocurrency prices fluctuate and ran an own motion investigation. His findings were remarkable.

"Believe half of what you see", said Mr. Smith. He goes on to explain that the entire cryptocurrency trading platform is a semi-sophisticated system of algorithms and robots working on both sides for the beneficiary of those robots.

"It is impossible for the 'newbie' to make a cent! In fact, that is how they all lose money", Mr. Smith said in a Blockchain conference today in Melbourne. He has uncovered a combination of a typical 'Ponzi' scheme combined with 'Shill Bidding'. Mr. Smith, as well as being a Certified Fraud Examiner, Certified Hacking Forensic Investigator, Cyber Crime and Cyber Security Expert, he is also a board member of the IIB Council, which is EC Council's new Blockchain board.

He holds about 12 Blockchain, Ethereum, Solidity, Bitcoin, Smart Contract and  HyperLedger Qualifications and has been a computer programmer and reverse engineer for over 21 years commercially. "I know how to beat the robots", Mr. Smith said. "As part of my investigation I figured out their algorithm and it was not pretty.

For example, the offering price might be $25.06. The actual purchase prices people are willing to sell for are always computer driven and may be at about $25.56. The split second a person places a bid at the advertised price of $25.06 there are four events that occur", said Mr. Smith. He has outlined them as below.

1. The advertised offering prices go up about 10% and expect you to chase them.
2. The actual purchase prices all jump up about 20%.
3. The computer always calculates that gap between the two and is working for both sides.
4. You cannot compete as a buyer or a seller as it places a $30k bid and buy on both sides.
5. The only sales that get through are when people just spring a bid on the high sale price.

Mr. Smith has designed software to counter and confuse this algorithm by reverse engineering its logic and is preparing to release a consumer version of software that helps everyday people not become the victim of fraud in trading cryptocurrency.

"It's a mess, and the trading platforms allow it. They make billions on transaction fees. This is an amazing discovery. I am open to the media requesting a visualisation of what I have discovered", stated Mr. Smith.

Site: https://www.evestigator.com.au
Media: https://www.evestigatormedia.com.au
LinkedIn: https://linkedin.com/in/simonsmithinvestigator
Email: media@evestigator.com.au