Whale Trader Linked to Fraudster Sparks Leverage Concerns on ETH, BTC, and GMX
20.03.2025 18:17
Blockchain investigator ZachXBT has alleged that a trader, suspected to be convicted fraudster William Parker, executed highly leveraged positions on HyperLiquid and GMX to net nearly $20 million in profits. The investigation traced on-chain transactions from a whale trader to a wallet linked to Parker, known for his history of hacking and gambling-related crimes. The trader reportedly opened a 50x leveraged long position on ETH and BTC just prior to a significant crypto reserve announcement by Trump, and a 40x leveraged short on BTC. The analysis also revealed connections to multiple counterparties, including major platforms such as Binance, Roobet, and Alphapo, and noted funds originating from a phishing scam and an exploited casino game. This revelation highlights the risks associated with excessively leveraged trading and the potential for fraudulent activities within the crypto ecosystem.
The heavy use of 50x leverage on ETH may increase volatility. In the short term, forced liquidations and margin calls could drive price drops, while long-term uncertainty and potential regulatory scrutiny might undermine investor confidence.
BTC's involvement through both long and short leveraged positions introduces heightened volatility risk. Immediate market reactions may occur if positions are liquidated, while extended concerns over risk management in crypto derivatives could impact its long-term price stability.
GMX, being directly tied to leveraged trading on the platform, is susceptible to negative sentiment. The news may prompt panic selling in the short term and, coupled with broader doubts over platform oversight, potentially depress the token's value over time.
Sources
ZachXBT Identifies Major Hyperliquid Trader
Financefeeds
21.03.2025 18:31
Crypto Whale Who Made Millions on Leverage Trading Is a Convicted Fraudster: ZachXBT
CoinDesk
21.03.2025 15:03
Who Is the 50X Hyperliquid Whale? ZachXBT Has the Answer
Beincrypto
21.03.2025 02:01
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