Crypto Whale Scores $7M Profit After 50x Leverage Trades Preceding Trump’s Strategic Reserve Announcement

Crypto Trader Earns $7M Using 50x Leverage Before Trump's Crypto Reserve Announcement, Raising Insider Trading Concerns

  • A cryptocurrency trader earned nearly $7 million profit from highly leveraged Bitcoin and Ethereum positions established shortly before Trump’s Crypto Strategic Reserve announcement.
  • The trader deposited $5.9 million in USDC on Hyperliquid and used 50x leverage to create positions worth approximately $200 million.
  • The timing of these trades has sparked speculation about potential insider trading, as some positions were closed minutes after Trump’s announcement.

A cryptocurrency whale has secured profits of almost $7 million after placing strategic 50x leveraged long positions on Bitcoin and Ethereum shortly before former US President Donald Trump announced his Crypto Strategic Reserve plan, which sent digital asset markets soaring.

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According to data from crypto analytics platform HyperDash, the trader deposited $5.9 million in USDC to decentralized derivatives exchange Hyperliquid on March 1, creating a foundation for what would become a highly profitable series of trades.

The trader’s first Ethereum long position was established on March 2 at 2:49 pm UTC. Just 35 minutes later, Trump revealed his Crypto Strategic Reserve initiative, triggering immediate price surges across cryptocurrency markets. The timing has raised eyebrows throughout the crypto community.

Approximately $4 million of the initial deposit was leveraged 50 times to create positions worth roughly $200 million. What’s particularly notable is that the whale began closing Ethereum positions from wallet address "0xe4d…02c62" merely 16 minutes after Trump’s announcement, according to HyperDash data.

Bitcoin positions showed a different pattern, with the first long position placed on March 1 at 10:44 pm UTC when Bitcoin traded around $86,033. These positions were subsequently closed at prices ranging from $87,512 to $91,399, with some exits occurring before Trump’s announcement.

HyperDash reports that most positions have now been closed, generating profits exceeding $6.8 million for the trader.

The chronology of events has sparked intense debate about potential insider trading. The 50x leverage employed by the trader carried significant risk – even a 2% price decline would have triggered liquidation, suggesting an unusual level of confidence in market direction.

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Carl Moon, founder and host of The Moon Show, said: "This $200 million long on Bitcoin and Ethereum before the Bitcoin strategic reserve announcement, could be the biggest INSIDER TRADE I’ve ever seen. Smells illegal."

Crypto researcher "FatMan" offered a more nuanced perspective, responding to speculation: "I don’t know if it was an insider or not, but it’s also possible for an insider to know the tweet is coming but not know the exact contents of the tweet."

It’s worth noting that Trump’s initial announcement only confirmed XRP, Solana, and Cardano‘s inclusion in the reserve. Bitcoin and Ethereum were confirmed approximately two hours later as being at the "heart of the reserve," which helps explain the different price movement patterns across cryptocurrencies during this period.

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The Crypto Strategic Reserve announcement follows evaluation from Trump’s Working Group on Digital Assets, led by executive director Bo Hines and crypto czar David Sacks. The former president is scheduled to host the first White House Crypto Summit on March 7, bringing together industry leaders to discuss regulatory policies and stablecoin oversight.

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