Crypto markets reel as a mysterious trader’s perfectly timed bets align with Trump’s policy shifts. This raises questions about illicit knowledge.
Insider Trading Suspicions
A crypto whale now holds $81 million in unrealised profits after shorting Ethereum with 50x leverage. The move followed President Trump’s tariff hike on Chinese imports to 20%, announced alongside new tariffs for Mexico and Canada. Critics argue the trader’s timing, which is minutes before major policy reveals, is a major hint at insider information.
From $6.8M Profit to $98M
The whale first grabbed attention in March, securing $6.8 million by long-positioning BTC and ETH just before Trump’s “Crypto Strategic Reserve” announcement. Hyperliquid data shows the trader deposited $5.9 million on March 1, opening $200 million in leveraged longs. Positions closed abruptly after Trump’s tweet, which initially excluded Bitcoin and Ethereum. Hours later, Trump clarified BTC/ETH were “at the reserve’s heart,” spiking prices.
Fast-forward to Today: The whale shorted ETH post-China tariff news, skyrocketing profits to $81 million. Analysts note both trades aligned minutes before official announcements.
Decoding the Whale’s High-Risk, High-Reward Strategy
Using 50x leverage, the trader risked liquidation with just a 2% price dip. However, precise timing defied odds. For instance, ETH longs opened March 2 at 2:49 pm UTC; Trump’s reserve tweet dropped 35 minutes later. Similarly, ETH shorts preceded tariff confirmations. “This isn’t luck—it’s calculated,” argued crypto researcher FatMan.
Notably, the whale closed some BTC positions before Trump’s reserve announcement, avoiding initial confusion over excluded assets. Such foresight fuels speculation.
Market manipulation or coincidence?
Trump’s policies have become market-moving catalysts. His Working Group on Digital Assets, led by Bo Hines and David Sacks, shaped the strategic reserve plan. Concurrently, tariffs on China, Mexico, and Canada aim to “protect U.S. interests,” but critics allege they’re exploited for volatility.
The whale’s bets capitalised on both fronts: longs before crypto reserve news, shorts post-tariffs. “This reeks of manipulation,” tweeted investor @CryptoVeritas. The White House denies prior policy leaks.
“Smells Illegal”
Carl Runefelt, host of The Moon Show, called the March trades “the biggest insider move I’ve ever seen.” Others echoed concerns. “Smells illegal,” one X user posted, while FatMan speculated, “An insider might know when a tweet drops, not its content.”
However, proving insider trading in decentralised markets remains challenging. Unlike traditional finance, crypto lacks centralised oversight, a loophole whales may exploit.
White House next steps
Trump’s March 7 Crypto Summit faces renewed scrutiny as attendees prepare to debate regulation. The event, featuring Hines and Sacks, will address stablecoin oversight and policy frameworks. Meanwhile, the whale’s identity stays hidden, shielded by blockchain pseudonymity.
As ETH wobbles under tariff-induced sell-offs, one question lingers: Who profits next from Washington’s whispers?
