- ZachXBT’s investigation into cryptocurrency fraud.
- $20M profits made through high-leverage trades.
- Potential regulatory scrutiny on decentralized trading platforms.
An investigation by on-chain detective ZachXBT has uncovered that a trader accrued approximately $20 million in profits from high-leverage trades on Hyperliquid and GMX from January to March 2025.
ZachXBT’s inquiry into the trading origins has raised concerns within the cryptocurrency community, underscoring the lingering risks of illicit activities on decentralized platforms.
ZachXBT Uncovers $20M Hyperliquid Profits Linked to Fraud
ZachXBT released findings on March 18, 2025, indicating that the trader operated under multiple pseudonyms, including addresses 0xe4d3 and 0xf3F4. These accounts reportedly profited by placing large long and short positions with notable leverage on crypto assets such as ETH and BTC.
Market attention heightened when it was discovered that the suspected gains coincided with an official cryptocurrency reserve announcement. “It’s funny watching CT speculate on the ‘Hyperliquid whale’ when in reality it’s just a cybercriminal gambling with stolen funds.”
Further analysis revealed the involvement of funds associated with multiple phishing sites and casinos, such as Roobet and Gamdom, highlighting input validation vulnerabilities. These assets eventually led investigators to an individual known as William Parker, arrested previously for fraud.
Despite these revelations, Hyperliquid has experienced record gains, reporting a 7-day milestone with a trading volume of $4.49 billion and revenue of $68.5 million. The community remains observant, waiting for any official remarks from involved platforms and regulators.
Historical Context, Price Data, and Expert Analysis
ZachXBT’s investigations have historically uncovered various fraudulent activities in the cryptocurrency space, often exposing complex scams that significantly impact market confidence and user trust.
Ethereum (ETH) price altered nearly -1.81% over the past 24 hours, currently trading at $1,983.95 on March 20, 2025. The market capitalization of ETH stood at $239.32 billion. CoinMarketCap data showed that daily trading volume turned by 10.69%, reaching $16.48 billion.
Experts predict increased scrutiny on decentralized exchanges, warning of potential regulatory crackdowns. This investigation emphasizes the importance of robust security and monitoring systems in blockchain platforms. Historical trends suggest that without proactive measures, more vulnerabilities may be exploited, potentially impacting broader market stability.
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