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A shrewd crypto trader, who reportedly amassed $190 million by shorting the market just before a significant crash, is now believed to have profited again by betting on a potential pardon for Binance founder Changpeng "CZ" Zhao. This dual success has fueled speculation about the trader's access to insider information.
Key Takeaways
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A crypto trader allegedly made $190 million shorting the market before a crash.
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The same trader reportedly profited by betting on a 2025 pardon for CZ.
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Speculation of insider trading surrounds the trader's timely market moves.
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Some market participants argue the trades were based on observable market signals.
The Double Play
The trader in question gained notoriety for executing perfectly timed short positions on Bitcoin and Ethereum mere hours before former US President Donald Trump announced a 100% tariff on China, a move that sent cryptocurrency prices plummeting. This initial success was followed by a reported $56,522 profit from a bet on Polymarket that Trump would pardon CZ in 2025.
Insider Trading Allegations
Onchain investigators, including "Coffeezilla" and "Euan," have pointed to blockchain data linking the trader to the Polymarket account, suggesting a pattern of leveraging non-public information. The precision of the initial short trades has led many in the crypto community to believe the trader possessed foreknowledge of both the market downturn and the potential for CZ's pardon.
Denials and Counterarguments
Garrett Jin, former CEO of BitForex, has previously denied controlling the wallet address associated with the Bitcoin short, stating it belonged to his clients. He also asserted no connection to the Trump family. Meanwhile, some market observers, like Swan Desk CEO Jacob King, argue that the pardon bet was "obvious," citing CZ's significant investment in a stablecoin as a potential indicator of a "pay-for-pardon" scenario. Crypto commentator Abbas questioned the logic of using insider information for relatively small gains, suggesting the pardon was not an "extremely unlikely event."
Market Reactions
The events have sparked debate within the cryptocurrency space regarding the nature of market intelligence and the line between astute trading and illicit insider dealing. While some see clear evidence of privileged information, others maintain that market participants can make informed, albeit highly profitable, decisions based on publicly available or discernible trends.
Sources
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Trader who made $190M shorting crash also apparently bet on CZ’s pardon, mx.advfn.com.
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Trader who made $190M shorting crash also apparently bet on CZ’s pardon — TradingView News, TradingView.
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