Former BitForex CEO Denies Insider Trading Allegations After Whale Short Position
Garrett Jin, former CEO of defunct cryptocurrency exchange BitForex, denied allegations of insider trading linked to a massive Bitcoin short position. According to Cointelegraph, Jin stated Monday on social media platform X that he has "no connection with the Trump family." The statement came after cryptocurrency researcher Eye claimed Jin controlled a wallet that opened a $735 million Bitcoin short position. The trade occurred less than one hour before President Donald Trump announced 100% tariffs on China on Friday, October 10.
The wallet in question belongs to a client, Jin clarified in his response. He criticized former Binance CEO Changpeng Zhao for sharing personal information by retweeting Eye's allegations to more than 10 million followers. On Saturday, Eye suggested Jin was a Hyperliquid whale controlling over 100,000 BTC. Bitcoin fell briefly to $102,000 following Trump's tariff announcement before the president walked back some remarks Sunday.
Why This Matters
The timing of the short position raised questions about whether traders had advance knowledge of policy announcements. The Block reports the whale made over $150 million in profits from the Friday short position. The trader then opened a new $160 million Bitcoin short on Monday with 10x leverage at an entry price of $117,370.
Insider trading accusations have appeared repeatedly in cryptocurrency markets. An unknown trader made more than $482,000 on the Bubb memecoin in March before the price dropped 50%. Trump's memecoin drew similar attention in January when a wallet purchased approximately $6 million of tokens less than one minute after launch. These patterns raise concerns about information asymmetries in digital asset markets where regulatory oversight remains limited.
Industry Implications
The allegations against Jin connect to BitForex's February 2024 collapse after $57 million disappeared from exchange hot wallets. The controversy adds to growing scrutiny of decentralized trading platforms where whale activity can move markets without traditional exchange oversight. We previously reported that an $11 billion Bitcoin whale rotated assets through Hyperliquid, with whales accumulating 200,000 Ethereum worth $515 million in Q2 2025.
Some analysts dispute the evidence linking Jin to the whale wallet. Blockchain investigator ZachXBT noted on X that only a 40,000 USDT transfer directly connects the wallets. He suggested the whale might be "a friend of Jin" rather than Jin himself. Cryptocurrency analyst Quinten Francois argued the evidence appeared "too convenient" to be credible.
The incident demonstrates how blockchain transparency enables investigation but cannot conclusively prove identity. Traditional financial markets maintain stricter requirements for large position disclosures and insider trading enforcement. Cryptocurrency markets operate with fewer protections despite similar risks from information advantages.
