A guy who thinks of himself as a middle-class that started from zero . . .

But Ryan, has a lot more to hide then we all know. Himself stated that is the grandson of a well known Commodities trader, that way right after college he was able to secure trading jobs in companies like the infamous 2008 financial crisis, Lehman Brothers.

He is an ivy-league kid raised by a family of white-collars in Hamptons. In 2015 ( 7 years ago ) he was still rich and was using daddy’s money to do random startups. Even his sister Melanie at 19 years she already had money for a startup in the most expensive area of New York, Hamptons.

https://hamptonivy.com/

The Grifting and his 26,688 deleted tweets.

One project that he got PAID for it as other influencers at that time was $GSWAP. He never let his followers know that it was doing paid promotions for GSWAP. Sending them into a low liquidity assets in order to create short-time pumps & liquidity so he can exit his early positions.

Tweet date: 22 - 11 - 2021

https://web.archive.org/web/20211122234252/https://twitter.com/CanteringClark/status/1462838971004821506

Moment on he literally DUMPS ON HIS FOLLOWERS. Since last tweet about GSWAP, the asset never recovered.

More DELETED tweets about $GSWAP and his pump and dump actions.

And the rest under link forms.

https://web.archive.org/web/20211122234252/https://twitter.com/CanteringClark/status/1462838971004821506 https://web.archive.org/web/20210724192452/https://twitter.com/CanteringClark/status/1418998045979693060 https://web.archive.org/web/20210725000744/https://twitter.com/CanteringClark/status/1418997320515981318 https://web.archive.org/web/20210326134854/https://twitter.com/CanteringClark/status/1375444481865027587 https://web.archive.org/web/20210724233645/https://twitter.com/CanteringClark/status/1418997068442611712

Sadly this is the case for the majority of NPC Crypto Influencers with a lot of following. They mostly do Bitcoin Analysis so they can organically “grow” their accounts and slowly they “insert promo” between those analysis with under 5M$ marketcap coins.

Which most of them never last because the influencer house costs 5M$, how you think he maintains that? Using his followers as exit liquidity from projects like this cashing out few hundred thousands and adding up, then people wonder up how they where keep pushing for longs while they were getting on a lose streak.

That can be as well noticed in their engagement rate from their followers during “down” periods or “bear” markets.

Here is the public and open list of all his deleted tweets (warning: they are over 26,000 DELETED TWEETS), click “View raw” in order to access it.

https://github.com/do-not-follow-me/CanteringClark-delete-tweets/blob/main/CanteringClark-deleted-tweets.csv

Thanks for support in tracing down these Crypto Twitter rats.

I guess exposing white-collars that pretend to be starting from zero while he raised himself using nepotism as his grandfather was a big shot in commodities, I end up like this.

Anyway for those who still follow this blog.

My new twitter account is: twitter.com/SpawnBearBaron

https://twitter.com/SpawnBearBaron

Thanks for your support!

Arthur Hayes is the infamous American banker, entrepreneur, derivative trader, Bitcoin advocate, and a fintech pioneer.

He was the CEO, and co-founder of BitMEX along with Ben Delo, and Samuel Reed.

BitMEX was founded in 2014, the parent company is HDR Global Trading. Hayes is the former CEO of BitMEX and parent company 100x Group. BitMEX is a digital asset trading platform which has traded trillions of dollars on the cryptocurrency exchange. BitMex is based in Seychelles. Hayes is based in Hong Kong. In October 2020, Hayes stepped down as CEO of BitMEX.

But the Federal Gov. think off him differently

They described Arthur Hayes differently: a man who “flouted” the law by operating in the “shadows of the financial markets.”

Hayes’s indictment was unsealed on 1st October 2020.

https://www.cftc.gov/PressRoom/PressReleases/8270-20

The U.S. Attorney for the District of New York indicted Hayes, Delo, and Reed, along with Gregory Dwyer, on federal charges of violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act.

And on February 24, 2022 Department of Justice have them under same federal charges.

https://www.justice.gov/usao-sdny/pr/founders-cryptocurrency-exchange-plead-guilty-bank-secrecy-act-violations

But what authorities missed about Arthur Hayes Bitmex Shady Days ?

• Trading against his customers.

• Preferential rights to himself and his Market Maker at that time Alameda Research.

• Market Manipulation

Here we will start to debase step-by-step his bad behavior, smug, criminal mind with a huge banking experience on which to pray on his new and unknowing customers.

Bitmex In-House Trading Desk

First of all let’s learn about the basics as the term ‘Index Price’, the price you see on Bitmex is not dictated by your trades, but rather by the movements on Bitstamp, Bitfinex, FTX, Coinbase, Gemini and Kraken.

Each with different ‘power’ or technically said ‘weight’. Currently the biggest power to move Bitmex price it is in Coinbase with 40% and FTX with 25%, while the rest have between 3-13%.

But when they first launched this ‘weight’ was distributed only between GDAX (Coinbase Pro) and Bitstamp each with 50% index ‘weight’.

All this is designed to try and give some allure of fairness to the unwitting public.

Internally operating inside this old relic that once was a derivates beast that is Bitmex - is a fully manned trading desk, working essentially as a covert subsidiary which can monitor the entire order book, as they have direct API / Backend server access and are employees of the company, so are privy to any dark pool data.

Not only should this make you wince, but please keep reading. It doesn’t stop there.

You open long, they open short. Well doesn’t matter, right?

The market is on a weighted index across two exchanges and Bitmex is just following that indexed price, everything is fair and square.

Wrong. This is the perfect situation for manipulation, Bitmex Trading Desk can as well execute orders on Bitstamp and Coinbase Pro affecting the indexed underlying assets and move those books.

But they as well royally shaft you with their XBTUSD Perpetual Contract, how?

It is hidden in plain sight, if you are wily enough to decipher it, if we take a direct quote from the Bitmex documentation it’s clear as day what’s going on here.

A trader goes long 50,000 contracts of XBTUSD at a price of 10,000. A few days later the price of the contract increases to 11,000.

The trader’s profit will be: 50,000 * 1 * (1/10,000 - 1/11,000) = 0.4545 XBT

If the price had in fact dropped to 9,000, the trader’s loss would have been: 50,000 * 1 * (1/10,000 - 1/9,000) = -0.5556 XBT. The loss is greater because of the inverse and non-linear nature of the contract. Conversely, if the trader was short then the trader’s profit would be greater if the price moved down than the loss if it moved up.

Remove the fancy wording, in plain english.

Profit is 0.4545, Loss is -0.5556 .

The odds are stacked against you.

That means for every loss trade you will need 1.4~ profitable trades to breakeven.

So even conservative trading with a limited risk exposure has to outperform by a factor of nearly a trade and a half.

So unless the market is trending strongly, statistically you will be unprofitable more often than not in consolidating range bound markets. Just because of fee structure and the 1.4 ratio.

So to rationalise these odds - it was impossible to enter a coin flip on Bitmex, because Bitmex owned 60% of the side you were betting on due to fees and just how it works.

There were no precautions, no warnings or alerts that protect the investors.

Ultimately they just wanted your Satoshi’s, and that’s obvious.

So you are long, they are short.

They can see your stop loss.

They can move the underlying.

When I asked Greg Dwyer where their Trading Desk is offering “liquidity” to the market, his answer was “In the less liquid altcoin instruments”.

Now Greg Dwyer is on the run from authorities somewhere in Bermuda fighting extradition and waiting for his trial in Oct 2022. He faces up to 5 years of jail.

https://www.theblockcrypto.com/linked/128686/criminal-trial-for-bitmex-exec-greg-dwyer-delayed-to-october

Greg Dwyer approached me after I personally moved big amount of Bitcoin in order to open a LONG position at 5900-6000$ range of 10M notional size using a 5X leverage.

One month later I got their greeting “Liquidation Order Placed”

Followed by the actual liquidation.

That is how easily you could get hunted by their Trading Desk.

OK, OK But these are claimless accusations, you have no proof they moved the Index Weight price, WRONG. Stay with me if you want to know exactly how they have done it.

Preferential treatment to Bitmex Trading Desk

First of all, let me introduce you Bitmex withdrawal system that is present and ALWAYS was unchanged.

The cutoff time for Bitcoin withdrawals is 13:00 UTC. Shortly after that, Bitcoin will be sent to the address you specified. BitMEX will be increasing the number of withdrawal times in the near future.

Source Archive.ph - 2015 Archive Bitmex FAQ Page:

https://archive.ph/lyIPC

Source current Bitmex withdrawal terms:

https://support.bitmex.com/en/support/solutions/articles/13000015791-where-is-my-withdrawal-

That means that withdrawals are processed between 13:00 UTC and 14:00 UTC.

Here comes in play their manipulation by using their indexed underlying assets and move those books.

On 15 November around 03:30 UTC, 4 withdrawals from Bitmex.com wallets get sent straight to Bitstamp.net.

acc2dd61d177e1780cab6c6e21d3c0ac823a52dbbdede779ab6944ef644d3525

6f7dee826afe21596826c32bb9b71edd554910c322fc3695b5e98f3f397f3ea6

3b27503ff3a8770eab37880584462b49f6ede44e8b2f3d6ee24be4137183800c

1c9a44befe90d43fcf926723ee25ec026d24181fffa8dbc7eeb4a890b3b321b0

Biggest of them being 250 BTC with a total of 474 BTC sent from Bitmex to Bitstamp in the ‘middle of the night’ as per UTC time.

As well a day before on 14 November 14:03 UTC they as well sent 500 BTC to Bitstamp.

113333ab47d6f7afa2f7a35518fb1938131d44093764ba60e41756b40118c91d

Resulting in a cascade on Bitstamp that pushed the underlying Bitmex index down.

They didn’t stopped just at this specific date. They kept doing it over and over until 2019. That is the moment when I presume the heat on Bitmex had started.

Here are other examples in the case of Bitmex Trading Desk → Bitstamp.

09-01-2019 - 60 BTC at 18:00 UTC

2829d839a9751718fd2a1278babd056b016ec2d19603092355ea0e39424793c5

11-06-2019 - 157 BTC at 17:07 UTC

4a645f92c1030e34c8af81b7dc3b420fead75b50967fef47d31ad2e0c6a9f315

And so on and so forth they are many, many transactions like these that were sent out way after their cut-off time of 13:00 UTC. And outside their sending window of 13:00 - 13:59 UTC.

Here are examples of normal withdrawals from Bitmex → Bitstamp on 15-07-2019.

Last one being at 13:44 UTC.

ffbe7f5cceb0f5c0ef551144bd5979f4e2f84bea4b2bffee2d00f0145f22dc35

b54ddf153b2ca1e202775978623cc671f9d2f05943a08fb0ea0a12ad13eae838

8cbdeb55c2e8b090e94a8a3e39a7103c7265e92ae8613d2f3fe6dcaa98de7925

After 4 hours aprox. on the same date again suspicious transactions are sent out.

At 18:40 UTC → 400 BTC where sent out again from Bitmex Trading Desk → Bitstamp.

9c2743abccb277973ad64b4d025881eb53360b9c82171ca2017c7d044d8454a6

As for my research I’ve filtered only transactions between Bitmex and Bitstamp.

I believe that as we reached this point, you my reader have no doubt of what happened behind Bitmex and their reign over 2015-2019 Bitcoin market price action.

Sir, what about Alameda preferential rights? You teased us too much!

Well I had to offer the big picture of how things where working before Alameda Research started their raise, yet too see their fall hopefully in future.

Alameda Research LLC got incorporated on 21-11-2017 and received the ATTESTATION to trade cryptocurrencies on 06-12-2017 between that date and 10-12-2019 they made staggering profits of 5244 BTC.

How they have done it? Well pretty simple as you can see they had 2 accounts.

Alamedaresearchltd@gmail.com and Alameda Research. So they traded with 2 entities both being in TOP 10. One being their British Virgin Island entity and one their US Entity.

They literally cornered the market and cumulative would have put them on NO. 1 in Bitmex leaderboard. So how Alameda Research had the EDGE to reach NO 1 ‘Trader’ on Bitmex? With a bit of help from mighty Arthur Hayes.

Alameda Research had as well withdrawn rights and their withdrawal requests were processed faster then any BitMex customer.

83af07c72f20246d457e2712f66f3d70e12378667abb6195d44ea984c1a95499

This is a Bitmex withdrawal sent to Alameda Research wallet at 10:51 PM on 20 June 2019. Two hours ahead any BitMEX customer.

This Alameda Research wallet that was tagged and identified was created in December 2018 and is still active and working on the markets as they please. It is just one of their many wallets.

Between December 2018 and Alameda Research - Bitmex they deposited 21K BTC and withdrawn 82K BTC in total.

All this with the help from Arthur Hayes, yet he haven’t realized that he was creating his own competition. While Samuel Benjamin Fried-Bankman was slowly building his empire.

• Alameda holds BitMEX leaderboard

• Alameda starts own exchange FTX

• FTX self-funded by Alameda

• FTX liquidity provided by Alameda

• Alameda has access to all the books

• FTX launches a boatload of products (Innovative but mostly illiquid)

• FTX acquires Blockfolio

More about SBF (Samuel Benjamin Fried-Bankman) and Alameda Research, will discuss in my next article on which I have to dedicate entire post in regards of his raise by early market manipulation and edge against retail and professional traders as he was the only one with ‘good ties’ that allowed him to move funds and liquidity where others couldn’t capture that edge by default.

Glossary / Links / Videos - Bitmex & Arthur Hayes

https://www.vanityfair.com/news/2021/02/the-rise-and-fall-of-bitcoin-billionaire-arthur-hayes

https://www.coindesk.com/business/2022/05/05/ex-bitmex-ceo-hayes-asks-for-no-jail-time-ability-to-travel-freely-report/

https://coingeek.com/bitmex-exec-greg-dwyer-agrees-to-us-extradition-to-face-doj-charges/

https://www.theblockcrypto.com/linked/128686/criminal-trial-for-bitmex-exec-greg-dwyer-delayed-to-october

https://coinjazeera.news/insider-bitmex-ceo-arthur-hayes-purposely-rekts-users-by-swinging-his-big-black-block/

The bot was dubbed “Willy” at some point. Since Willy was buying in such a recognizable pattern

Willy bought a grand total of 270,000 bitcoins, usually in $2,500,000 allotments, mostly in November, at a staggering price of $112 million.

The other bot, dubbed “Markus”, is even more anomalous. It appears to have bought approximately 300,000 bitcoins at completely random prices, with some trades totaling US$15.13 regardless of the number of bitcoins bought, and paid zero trading fees.

The 'Willy Report', a one-post default-themed Wordpress site, gives a detailed rundown of the suspected bots' trading activity from around September to the end of November 2013.

Strange records

Odd patterns in the two trading entities' buying behaviour are compounded by suspicious details in their user registration data. Willy had only '??' listed for a country code when all other accounts were identifiable. Markus' location was listed as 'Japan', and both had ID numbers unusually high compared to other users'.

The Willy entity was also unaffected by Mt. Gox's downtimes, continuing to buy between 10-20 BTC every 5-10min even at times when the exchange was non-functional to regular users, leading to the conclusion that Willy entity was running on localhost, directly on Mt. Gox servers.

At approximately 01-02 EST on 7 January 2014, the Mt. Gox Trading API went offline for everyone in the world. Except for Willy, the infamous buy bot suspected of belonging to Mt. Gox itself.

During the next ~90 minutes, Willy continued to buy his usual 10-19 BTC every 6-20 minutes while nobody else in the world could trade.

Everyone denied, until House of Mt. Gox had fallen and answers had to be given to persecutors.

Amazingly enough, although the company appears to be in the dark, they were technically insolvent for nearly two years before the hack became public.

By mid-2013, a year in which the company seemed to be enjoying huge success, they had already lost nearly all of their bitcoin.

It’s even possible about 80,000 was already missing when Mark Karpelés bought the exchange in 2011.

How did nobody know what was going on?

Many former employees cite mismanagement and disorganization within the company.

An anonymous developer revealed that the company didn’t even use version control software. This industry-standard tool was used to prevent colleagues from accidentally overwriting another’s work if they happened to be working on the same file.

Mt.Gox was at that time supported by many individuals that are now acting in ‘good faith’ but Roger Ver went a bit more far and gone straight to Mt. Gox offices in Japan, from which he recorded the video below stating that Mt. Gox is liquid and safe.

The exchange was ultimately shut down in February 2014 after a hack led to the loss of 850,000 Bitcoins.

On 20 March 2014, Mt. Gox reported on its website that it found 199999.99 bitcoins—worth around $116 million—in an old digital wallet used prior to June 2011.

In a series of tweets today, Burges said that despite “super tight security” and a “small courtroom,” he was able to get a place inside, albeit without his interpreter.

https://twitter.com/The_K_meister/status/884648706372448256?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E884648706372448256%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fmt-gox-trial-update-karpeles-admits-willy-bot-existence

Never trust exchanges with your digital assets. They will use them in their nefarious activities and disguise it as ‘regular’ users activity.

I haven’t found a better way to start Crypto Debased then to have the first recorded market manipulation in Bitcoin market.

Stay safe, anon.