‘Hyperliquid 50x Leverage Whale’ Is a Cybercriminal Using Stolen Funds— ZachXBT

The crypto community was recently rocked by shocking claims from blockchain investigator ZachXBT, who revealed that the so-called “Hyperliquid Whale,” a trader who made a fortune using extreme leverage, was not a financial genius but rather a cybercriminal gambling with stolen funds.

This revelation has ignited intense discussions across Crypto Twitter, with many calling for more transparency in the industry.

The controversy began when a trader posted about a major short position on Bitcoin, resulting in a staggering $9 million profit.

The crypto community speculated about the whale’s identity, assuming it was a seasoned investor with deep knowledge of market trends.

However, ZachXBT swiftly dismissed these assumptions, stating:

“It’s funny watching CT speculate on the ‘Hyperliquid whale’ when in reality it’s just a cybercriminal gambling with stolen funds.”

The exchange took a dramatic turn when other users demanded that ZachXBT reveal the individual’s identity, with some suggesting links to North Korea’s notorious hacking group, Lazarus.

However, ZachXBT denied these claims while expressing frustration over the declining quality of investigative discussions on social media.

It’s funny watching CT speculate on the “Hyperliquid whale” when in reality it’s just a cybercriminal gambling with stolen funds.

The whale’s trading strategy revolved around a highly leveraged short position on Bitcoin, strategically placed ahead of the Federal Open Market Committee (FOMC) meeting.

Data shows that the trader placed a 40x leverage short position on 6,210 Bitcoin, worth over $516 million, with an entry price of $84,043.

JUST IN: THIS WHALE HAS SET TWO TAKE PROFITS, ON HIS 40X $BTC SHORT:

1ST TP: $69,414
2ND TP: $58,664

Source: @rovercrc https://t.co/5ecRTKvZbB pic.twitter.com/PPrmZCmzjj

The position would have been liquidated if Bitcoin’s price exceeded $85,592, but instead, the whale exited the trade within hours, walking away with a $9.46 million profit.

Leveraged trading amplifies both gains and losses and in this case, the whale had to add $5 million to the position to prevent liquidation.

A group of retail traders even attempted to force a liquidation, but their efforts failed.

Blockchain analytics firm Lookonchain documented these movements, noting how the whale quickly shifted from shorting Bitcoin to accumulating Ether with the profits and purchasing over 3,200 ETH for $6.1 million.

This whale still managed to turn a profit despite being hunted by a team!

11 hours ago, @Cbb0fe publicly formed a team to hunt this whale who shorted $BTC with 40x leverage.

Just one hour later, the team was in action, driving $BTC above $84,690 in a short period.

The whale… pic.twitter.com/D6FBOFikZR

The trade was particularly significant as it coincided with the market’s anticipation of the FOMC meeting, which could impact Bitcoin’s trajectory based on interest rate decisions.

Analysts suggest that easing inflation concerns could support Bitcoin’s upward movement, but unexpected hawkish signals from the Fed could trigger further volatility.

Beyond the Hyperliquid Whale case, ZachXBT has been vocal about the rampant illicit activity in the crypto space, particularly when it comes to hacks and money laundering.

In a recent message shared on his Telegram channel, he detailed his involvement in helping freeze funds from the Bybit hack, which he described as an “eye-opening” experience.

According to ZachXBT, many so-called “decentralized” protocols are deeply compromised, with some seeing nearly 100% of their transaction volume originating from North Korean cybercriminals.

He also criticized centralized exchanges for their slow response to illicit funds flowing through their platforms, stating that it often takes only minutes for criminals to launder money, while some exchanges take hours to act.

His most alarming claim was that North Korean hackers had laundered approximately $1.4 billion from a recent exploit, further exposing the deep flaws in the current crypto security landscape.

He also questioned the effectiveness of Know Your Customer (KYC) and Know Your Transaction (KYT) protocols, arguing that they often serve as mere bureaucratic obstacles for legitimate users while doing little to deter actual criminals.

As it stands now, the Hyperliquid Whale controversy is still ongoing unless ZachXBT reveals his investigations.

While some argue that regulatory oversight could help curb illicit activity, others fear heavy-handed intervention could stifle innovation and impose undue restrictions on legitimate traders.

However, clearly, without some form of intervention, the industry risks becoming a haven for cybercriminals, further damaging its reputation.

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