Quote from: jaysabi on October 01, 2014, 10:54:50 PM

That's the other giant issue here, but I wanted to understand what the scam was first.

Can anyone with a little insight explain why the scam would be structured this way? My assumption is that it would be to try to hide the fraud, but creating fake winning bets doesn't seem to do that. It seems to draw more attention to someone investigating a loss streak when suddenly winning bets show up, and then losing bet values change. Why do that?

the point is that when a whale is playing, you can start skipping his winning bets and hope that he does not notice.
this will decrease whale's winnings, because he should have won that bet, but they skipped it.
now you insert in fake bets for the skipped ones if they randomize to check their play history.
they did this because that the last time they got caught last cheating was due to missing bets.
to fabricate fake wins while keeping the total balances the same, they had to increase the losses of some bets, so they took a naive algo approach and just increased the loss of the bet immediately after the win by the same amount.
unfortunately they didn't realize that some players only play with certain wager amounts.