During the latest crash that hit the cryptocurrency market, a trader appeared with a strangely precise position. He has just made headlines again, following a bet placed on Polymarket regarding Changpeng Zhao’s pardon. A presidential pardon that is clearly not unanimously supported.
A bet won on Changpeng Zhao’s pardon
The cryptocurrency market is often criticized for manipulation and insider trading. This reality has been brought back into the spotlight since Donald Trump came to power, whose numerous crypto activities inevitably raise questions about possible conflicts of interest.
This situation quickly brought to light an $80 million short position opened in early October on the decentralized platform Hyperliquid, shortly before the market collapsed following an announcement by Donald Trump about his customs policy. The result: approximately $200 million in profits in 24 hours.
Suspicions quickly fell on a certain Garrett Jin, former founder of the BitForex cryptocurrency exchange platform. He was also identified as the holder of the “bigwinner01” account on the Polymarket prediction market platform, with a single position estimated at $85,000 on the imminent pardon of Binance founder Changpeng Zhao.
The bet was won yesterday with an estimated profit of around $56,500, following the official announcement of the presidential pardon. This has reignited suspicions of further insider trading, although some observers are quick to point out that the profit seems rather meager compared to the $200 million pocketed on October 11.
A pardon that is clearly not unanimously supported
This new development is unlikely to calm the anger of Senate Democrats, who are unanimously condemning this presidential pardon, which they describe as blatant “corruption.”
This was an opportunity for Senator Elizabeth Warren to recall Changpeng Zhao’s recent support for the development of World Liberty Financial’s USD1 stablecoin, one of Donald Trump’s crypto companies.
First, Changpeng Zhao pleaded guilty to a criminal charge of money laundering. Then he supported one of Donald Trump’s crypto companies and lobbied for a pardon. Today, Donald Trump did his part and pardoned him. If Congress does not put an end to this kind of corruption in the current legislation on market structure, it will become complicit in this illegality.
Even Joe Lonsdale, one of Donald Trump’s most ardent—and wealthiest—supporters, yesterday posted his opposition to this presidential pardon on the X network, saying that “it gives the impression that massive fraud is taking place around him in this area.” This is a scathing criticism coming from within the MAGA circle itself, which certainly hides others who have remained silent.
