- A Hyperliquid trader supposedly made over $150 million in profits by shorting assets just before Trump announced 100% tariffs on Chinese imports
- The analyst identifies two individuals, Zach Witkoff and Chase Herro, as alleged intermediaries
- It’s suggested that some of this insider data might have come via the foreign policy apparatus of the Chinese Communist Party or via internal White House networks
A blockchain analyst known as Eye claims that White House insiders may have leaked confidential information to select crypto traders, enabling them to profit heavily. Specifically, a Hyperliquid trader supposedly made over $150 million in profits by shorting assets just before Trump announced 100% tariffs on Chinese imports.
The analyst identifies two individuals, Zach Witkoff and Chase Herro, as alleged intermediaries. It’s been said that they have had associations with senior officials and are suspected of executing trades based on non-public information prior to the official announcement.
Additionally, while an analysis had previously associated a Hyperliquid user’s remarkably profitable trading activity with former BitForex CEO Garrett Jin, emerging evidence now indicates that Jin may have served as a proxy for another party.
Related: Did a Single Trump Tweet Unleash One of Crypto’s Most Sophisticated Market Attacks?
It’s suggested that some of this insider data might have come via the foreign policy apparatus of the Chinese Communist Party or via internal White House networks.
The timing seems suspicious since the trader(s) took positions just before the tariff announcement that crashed the crypto market several days ago, capitalizing on the market shock that followed.
Political and insider crypto trades
So far, it looks like the investigation is ending here, at least when it comes to Eye, since the analyst said they won’t be looking into this anymore for security reasons.
However, if allegations of insider leaks from the White House to crypto traders prove true, it could trigger one of the biggest regulatory crackdowns in the digital asset market’s history.
Crypto markets are already under the microscope for wash trading, price manipulation, and the undisclosed activities of large-scale holders.
For instance, at the start of this month, reports state that US government regulators (SEC and FINRA) are now looking into over 200 companies that have made buying crypto a key part of their business plan, following allegations of insider trading.
Related: White House Debates Potential Pardon for Former Binance CEO Changpeng Zhao
The specific companies weren’t named, but the news comes at a time when more businesses are copying MicroStrategy’s playbook of aggressively buying crypto for their corporate treasuries.
In the end, whether Eye’s accusations turn out to be true or not, the story highlights a worrying trend of inside information about government policy, perfectly-timed trades, and crypto betting becoming dangerously intertwined.
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