A cryptocurrency trader, previously suspected of profiting from insider knowledge by shorting the market before a major US tariff announcement, is believed to have made another significant profit. This time, the trader allegedly bet on former President Donald Trump pardoning Binance founder Changpeng “CZ” Zhao.
Onchain sleuth Euan highlighted data from Etherscan, suggesting a connection between this trader and a specific Polymarket account. The crypto wallet in question reportedly earned $56,522 on Polymarket by wagering that Trump would grant a pardon to Changpeng “CZ” Zhao at some point in 2025.
This trader had already garnered suspicion within crypto circles due to their precisely timed Bitcoin and Ethereum short positions. These trades were executed just hours before Trump's tariff announcement, which subsequently led to a market downturn. The timing of these trades led some to believe the trader possessed access to non-public information.
The recent Polymarket bet has further fueled speculation, with some believing the trader must have also had foreknowledge of the potential pardon.
Crypto Executive Garett Jin Denies Wallet Ownership
Onchain investigator Coffeezilla commented on the situation, stating, “Looking like obvious insider knowledge.” He shared a post from onchain sleuth Eye, who suggested the trader “knows something we don’t know.” Coffeezilla's remarks were made in an X post to his substantial following.
Garrett Jin, the former CEO of BitForex, has previously refuted claims of being behind the crypto wallet. This wallet had initiated a short position on Bitcoin less than an hour before Trump announced a "tariff of 100% on China" on October 10.
Jin reiterated his stance, asserting he had “no connection with the Trump family” and denying any allegations of insider trading. These denials came after crypto researcher Eye claimed Jin controlled a wallet address utilized by a significant player, or whale, to short Bitcoin.
In a separate X post on October 13, Jin clarified, “The fund isn’t mine — it’s my clients’. We run nodes and provide in-house insights for them.” This statement aimed to distance himself from the specific trading activities while acknowledging his role in providing insights to clients.
Market Participants Argue the Trade Was Predictable
Despite the speculation surrounding insider knowledge, several market participants argue that the trade was relatively obvious. Swan Desk CEO Jacob King stated in an X post that the pardon “was obvious,” revealing that he himself profited $956,000 by betting on Trump pardoning Zhao.
King elaborated on his reasoning, suggesting that CZ’s investment of over $2 billion into WLFUSD Stablecoin was a strong indicator. He described this move as practically signaling a “pay-for-pardon” strategy.
Crypto commentator Abbas also questioned the insider trading allegations. He posed a rhetorical question: “You really think someone with access to the President of the United States would use insider information to make $56k?”
Abbas further argued that the pardon was not an “extremely unlikely event” and had been a topic of discussion for a considerable time. This perspective suggests that the trade could have been based on market sentiment and ongoing political discussions rather than exclusive insider information.