Ethereum Wallet Allegedly Linked to Trump Associates Nets $6.4 Million from Bitcoin Short Trade

An Ethereum wallet, suspected to have ties to associates of Donald Trump, gained significant attention on Oct. 22 due to the closure of a major Bitcoin (BTC) short trade, yielding a profit of $6.4 million (approximately 9.4 billion won). According to Decrypt’s report published on Oct. 24, this wallet has been engaged in strategic cryptocurrency market maneuvers, raising concerns about potential insider trading and alleged connections to high-profile individuals.

The $6.4 Million Bitcoin Short Trade

Identified by its alphanumeric ending "7283ae," the Ethereum wallet made strategic short trades on Bitcoin earlier in October following an initial USDC deposit of $30 million to the decentralized derivatives platform Hyperliquid. Analytics confirmed that the Bitcoin market price during this short position ranged between $109,000 and $113,000.

When Bitcoin's value plummeted dramatically between Tuesday night and Wednesday, the wallet closed its position, netting a clean $6.4 million profit. However, Bitcoin rebounded quickly and climbed to approximately $110,500 by Thursday, surpassing the earlier marked price of the short order on Hyperliquid.

Hyperliquid Profits Exceed $100 Million

Further analysis by Hypurrscan, Hyperliquid’s analytics tool, revealed a history of success for the controversial Ethereum wallet, having amassed nearly $100 million in cumulative profits from derivatives trading. The wallet has repeatedly demonstrated an uncanny ability to predict and capitalize on significant market downturns, including a major cryptocurrency liquidation event earlier this month that erased $19 billion from the market.

The account’s extraordinary performance has sparked speculation about its associations and methods, with some alleging ties to Donald Trump’s inner circle. Garrett Jin, the former CEO of BitForex and reportedly linked to the wallet, denied connections to Trump or any misconduct involving insider information. Despite these denials, blockchain analysis shows the wallet remains active, continuously executing high-value derivative transactions. Notably, it currently holds a balance of $36 million, although no active orders were documented by Thursday afternoon.

Controversial Political Prediction Wager

Adding further intrigue to this Ethereum wallet’s activity is a recent profit made via Polymarket, a blockchain-based political prediction platform. Blockchain analysis firm Arkham disclosed that the wallet had forecasted former U.S. President Donald Trump pardoning Binance founder and former CEO, Changpeng Zhao (CZ).

Weeks before Trump made the unexpected decision last Thursday, the wallet reportedly began purchasing shares priced at $0.30 each in anticipation of this political development. When the pardon materialized, the shares’ value skyrocketed, earning $56,824 in additional revenue for the wallet. This episode further fueled debates surrounding the wallet’s presumed connections and its potential access to privileged information.

Ethical and Legal Concerns Surrounding the Wallet

The Ethereum wallet’s impressive series of profitable ventures, coupled with rumored ties to political and financial figures, has ignited scrutiny within the crypto ecosystem. Community debates and investigative efforts continue to question whether these transactions are purely the result of adept forecasting or aided by unethical practices, such as insider trading or access to confidential information.

Regulatory authorities and blockchain investigators are increasingly examining the wallet’s activities for potential breaches of ethical or legal standards in cryptocurrency trading. The spotlight placed on Hyperliquid as a platform highlights the volatile nature of decentralized derivatives markets, where fortunes can be built in mere days but are often accompanied by skepticism and scrutiny.

As investigations unfold, the conversation surrounding this wallet underscores the broader challenges the crypto sector faces in balancing innovation and transparency, especially amid growing concerns of insider influence and regulatory oversight.