Bitcoin Short Before Trump Tariffs Sparks Insider Trading Probe

A wallet address identified by pseudonymous crypto researcher Eye was used to open a substantial Bitcoin short position minutes before US President Donald Trump announced sweeping 100% tariffs on China last Friday. The timing of this trade, placed less than sixty minutes before the market-moving announcement, immediately raised red flags throughout the cryptocurrency community. The short position contributed significantly to Bitcoin’s price drop following the tariff news, creating substantial profits for whoever controlled the wallet.

The precision of the trade’s execution just before major geopolitical news broke suggests the possibility of advance knowledge of Trump’s tariff announcement. Market analysts noted that such perfectly timed positions are statistically improbable without some form of information advantage. The incident has exposed the vulnerability of cryptocurrency markets to potential insider trading, particularly around politically sensitive announcements that can dramatically impact asset prices.

Former BitForex CEO Garrett Jin has publicly denied allegations that he controlled the wallet used for the controversial Bitcoin short. In a Monday post on social media platform X, Jin stated he had ‘no connection with the Trump family’ and disputed claims made by researcher Eye about his involvement in the suspicious market activity. Jin’s denial comes amid growing scrutiny of his potential role in the trade that capitalized on advance knowledge of Trump’s China tariff policy.

The allegations gain additional context from Jin’s background as the former CEO of BitForex, a cryptocurrency exchange that ceased operations earlier this year. While Jin has stepped away from the defunct exchange, his extensive experience in cryptocurrency markets and trading raises questions about his potential involvement. The connection to BitForex adds another layer of complexity to the investigation, given the exchange’s history in the crypto ecosystem and Jin’s familiarity with market mechanics.

This incident highlights ongoing concerns about market manipulation and information asymmetry in cryptocurrency trading. Unlike traditional financial markets with established regulatory frameworks for monitoring insider trading, crypto markets operate with less oversight, creating opportunities for those with privileged information to profit. The Trump tariff announcement represents exactly the type of geopolitical event that can be exploited by individuals with advance knowledge.

The case also underscores the growing role of pseudonymous researchers like Eye in policing cryptocurrency markets. These independent investigators use blockchain analytics to identify suspicious trading patterns and connect wallet addresses to real-world entities. Their work has become increasingly important in an ecosystem where formal regulatory enforcement remains limited, though their findings often rely on circumstantial evidence and pattern recognition.

As regulatory scrutiny of cryptocurrency markets intensifies globally, incidents like this Bitcoin short before Trump’s tariff announcement may accelerate calls for greater transparency and oversight. The perfect timing of the trade, combined with its substantial market impact, serves as a stark reminder of how geopolitical developments can be monetized through cryptocurrency positions when information advantages exist.