Garrett Jin, the former CEO of defunct crypto exchange BitForex, has denied allegations of insider trading related to President Trump's recently announced tariffs on Chinese imports. The accusations surfaced after Jin allegedly profited over $150 million by shorting Bitcoin and Ether shortly before Trump's tariff announcement, leading some to believe he had prior knowledge of the impending market-moving event.
The allegations gained traction after on-chain analyst Eye (@eyeonchains on X) posted data purportedly linking Jin to the trade, including wallet addresses and biographical information. The post was subsequently amplified by Binance co-founder Changpeng Zhao (CZ), who shared it with his millions of followers, further fueling speculation. CZ added a comment stating, "Not sure of validity. Hope someone can cross check," which added to the controversy.
In response, Jin took to X to deny any connection to the Trump family or any insider knowledge of the tariffs. "Hi CZ, thanks for sharing my personal and private information. To clarify, I have no connection with the Trump family or Donald Trump Jr. — this isn't insider trading," Jin stated. He also clarified that the funds used in the trade belonged to his clients, and the investment decisions were based on in-house insights. "The fund isn't mine — it's my clients'. We run nodes and provide in-house insights for them," he explained.
While Jin has denied the accusations, some on-chain analysts remain skeptical about his level of involvement, with some suggesting that he may have acted in concert with others. Despite the controversy, a Hyperliquid account tied to Jin has opened a new position, reportedly placing over $16 million into a 10x leveraged short bet on Bitcoin. This new position has further fueled the debate surrounding Jin's trading activities.
Adding another layer to the situation, Jin has reportedly criticized crypto exchanges for offering excessive leverage, calling for a market stabilization fund to support liquidity during crises. This stance comes in the wake of centralized exchanges facing criticism during the market volatility surrounding Trump's tariff announcement, with some platforms experiencing outages and delays. Hyperliquid, however, claimed its blockchain experienced no downtime during the period.
The unfolding situation highlights the complexities and potential pitfalls of cryptocurrency trading, particularly concerning insider information and market manipulation. The case also underscores the increasing role of on-chain analysis and social media in uncovering and disseminating information about potentially illicit activities in the crypto space.
