Jin Rejects Allegations Over Bitcoin Short
Garrett Jin, the former chief executive of collapsed cryptocurrency exchange BitForex, has denied claims that he profited from insider knowledge tied to a major Bitcoin short. In a post on X, Jin dismissed reports from the pseudonymous researcher known as Eye, who alleged he controlled a whale wallet that opened a large short position ahead of U.S. President Donald Trump’s new China tariffs.
“I have no connection with the Trump family,” Jin wrote, rejecting any suggestion of insider trading. The wallet in question reportedly opened a short position less than an hour before Trump announced a 100% tariff on Chinese goods last Friday — a move that coincided with a sharp fall in Bitcoin’s price to roughly $102,000. The timing prompted speculation that someone with knowledge of the announcement had taken advantage of the news.
According to Eye, the same address held more than 100,000 BTC and used the derivatives exchange Hyperliquid to place the short. Jin responded that the wallet belonged to a client and criticized former Binance CEO Changpeng Zhao (CZ) for amplifying the post to his 10 million followers, calling it “personal and private information.”
Investor Takeaway
Market Impact and Doubts Over the Claims
The short position, reportedly worth $735 million, drew widespread attention as Bitcoin dropped in the wake of Trump’s remarks. However, analysts and on-chain investigators were divided on whether Jin was directly responsible. Crypto sleuth ZachXBT said on X that it was more plausible the trades came from “a friend of Jin,” while analyst Quinten Francois called the evidence “too convenient.”
Trump attempted to soften his stance over the weekend, posting on Sunday that Americans should “not worry about China,” comments that helped Bitcoin recover part of its losses. Still, the brief market slump highlighted how politically sensitive digital assets remain, especially when high-leverage positions magnify reactions to macro headlines.
BitForex, once a mid-sized exchange, shuttered earlier this year following liquidity issues and regulatory scrutiny. Its collapse left traders with frozen funds and added to concerns about transparency in offshore trading platforms — a backdrop that has made allegations against its former executives especially contentious.
Ongoing Pattern of Insider Activity in Crypto
Jin’s denial adds to a series of controversies involving suspected insider activity in digital asset markets. In March, an unidentified trader made about $482,000 from early transactions in the Bubb (BUBB) memecoin shortly before its price halved. In January, a wallet purchased roughly $6 million of the Official Trump (TRUMP) token within seconds of its launch — a trade that many in the industry flagged as suspicious.
Regulators have long warned that crypto markets remain vulnerable to manipulation due to their fragmented structure and lack of disclosure rules. While major exchanges have introduced monitoring systems, most onchain derivatives platforms operate without centralized oversight, allowing large actors to move markets with little accountability.
Investor Takeaway
What Comes Next
As of Monday, no formal investigation has been announced into the alleged trades. Jin said he will continue to defend himself against what he described as false and defamatory claims. The incident has reignited debate over the need for greater transparency in whale positions and derivatives exposures, especially as political developments increasingly drive crypto price swings.