- ZachXBT links Hyperliquid whale’s trade to stolen crypto funds.
- Whale profits $9.4M from $520M Bitcoin short amid allegations.
- Investigations reveal suspicious wallet transactions and malware ties.
A crypto trader known as “Hyperliquid whale” is under scrutiny. Blockchain analyst ZachXBT claims that the trader uses stolen funds to make high-leverage trading bets. ZachXBT has announced he will provide more evidence to support these fraud accusations within 24 hours.
Hyperliquid Whale Closes $520M Bitcoin Short Position
The trader, who operates under the X handle, @qwatio achieved mainstream attention when he closed a $520 million Bitcoin short position. The position, hosted on decentralized platform Hyperliquid, had been opened with 40x leverage. The trader obtained a total of $9.4 million profit after he closed the position.
During the last week the trader invested over $300 million in a long Ether position. However, HyperLiquid’s Vault lost $4 million when the position was liquidated. The trader currently holds a 5x long position on the MELANIA token with a valuation of $3.3 million.
ZachXBT Accuses Hyperliquid Whale of Cybercrime
Blockchain investigator ZachXBT traced this trader’s transactions to what could be illicit sources. The investigative report revealed how the Hyperliquid whale’s wallet received stolen funds from malware victims. Moreover, ZachXBT claims the trader’s wallet receives its funds primarily from illicit exchanges and online casinos which both serve as vehicles for money laundering operations.
The trader publicly denied any involvement in illegal actions despite the accusations against him. The individual reacted immediately to ZachXBT’s accusations and demanded proof about the alleged stolen funds. The trader questioned the validity of the allegations that their wallet received transactions from various suspicious sources.
ZachXBT has not released the complete evidence yet but stated the evidence would be available soon. Initial findings show the trader recently obtained their X account which adds suspicion to their mysterious activities. Further analysis of the wallet’s transaction history shows irregular patterns consistent with illicit crypto transactions.
Concerns Over Security of Decentralized Platforms
The public debate about the Hyperliquid whale has raised concerns about the security of decentralized platforms. Moreover, it reveals the persistent challenges about tracking and verification of the source of funds across the crypto market. The development of sophisticated blockchain analytics systems enables investigators to detect and expose questionable activities.
The Hyperliquid whale has attracted mixed responses from the cryptocurrency community. Some believe the trader’s high-risk transactions are normal trading operations while others remain suspicious about the source of the capital. The crypto community continues to monitor the investigation for more updates.
This investigation could have a major impact on the regulation of decentralized platforms.