Mystery Crypto Trader Earned Over $160 Million by Betting Against Bitcoin and Ethereum
Investors and traders across Wall Street and in the cryptocurrency online community experienced significant losses last week. However, amidst the chaos, one mysterious individual managed to profit handsomely immediately following President Trump’s announcement of a 100 percent tariff on Chinese goods. This anonymous trader capitalized on the situation by shorting major cryptocurrencies at precisely the right time, netting nearly $200 million in profit.
Following Mr. Trump’s tariff announcement, which coincided with a sharp drop in Wall Street and cryptocurrency values, observers quickly noted the peculiar trades that took place. Bitcoin, in particular, witnessed a significant decline of over eight percent in just three days, culminating in what was dubbed as the worst liquidation day in the history of the cryptocurrency.
The trader behind the profitable move had begun shorting Bitcoin and Ethereum in the hour leading up to the tariff announcement, raking in over $90 million from the Bitcoin shorts and an additional $70 million from the Ethereum shorts as both assets plummeted by more than seven percent and more than 12 percent, respectively, on that fateful Friday.
These strategic trades were carried out on the Hyperliquid public crypto exchange, where users could observe trades made by others while maintaining anonymity. The trader, known only by the account name “MLM,” hinted at the possibility of similar actions taking place on other exchanges beyond what was made public on Hyperliquid.
This incident is not the first instance of individuals profiting off the fluctuations caused by President Trump’s trade war agenda. In a similar turn of events back in April, the president’s proposed tariffs were met with swift reactions in various markets. Shortly after announcing his tariffs, Mr. Trump reversed course, citing concerns about bond market jitters.
Prior to the tariff delay announcement, a trader had purchased an unusually high volume of call options on U.S. stocks, resulting in extraordinary returns of approximately 2,100 percent within an hour. The expiry of these call options at the end of the day, coupled with the subsequent positive market response to Mr. Trump’s tariff delay, raised suspicions among lawmakers.
In response to the peculiar trading activities, lawmakers on Capitol Hill called for an investigation into the matter. Congresswoman Alexandrai Ocasio-Cortez highlighted the need for transparency and disclosure among members of Congress regarding recent stock purchases. Additionally, a duo of Democratic senators penned a letter to the White House, seeking clarity on whether individuals within the president’s inner circle had engaged in trading activities ahead of policy announcements.
