Bitcoin Short Whale Exposed: Stolen Funds, $9M Profit

Bitcoin Short Whale Exposed: Stolen Funds, $9M Profit

A significant Bitcoin short position, recently executed by a crypto whale, has been linked to a cybercriminal using stolen funds, according to blockchain investigator ZachXBT. This revelation follows a failed attempt by a group of traders, led by the pseudonymous CBB, to trigger a short squeeze against the whale.

Key Findings

• A crypto whale, identified by ZachXBT as a cybercriminal, executed a highly leveraged Bitcoin short position.
• Despite a coordinated effort to liquidate the position, the whale successfully closed their trades with a profit exceeding $9 million.
• The whale initially held a 40x leveraged short position of 3,940 BTC at a price of $84,040, totaling over $332 million.
• The whale added $5 million in USDC to increase margin and prevent liquidation when the price approached the liquidation threshold of $85,300.
• The whale is not affiliated with the Lazarus Group.

ZachXBT's tweet highlighted the irony of the crypto community speculating about the "Hyperliquid whale" while the reality was far more nefarious:

It’s funny watching CT speculate on the “Hyperliquid whale” when in reality it’s just a cybercriminal gambling with stolen funds.

— ZachXBT (@zachxbt) March 18, 2025

The attempted short squeeze, orchestrated by CBB, briefly pushed Bitcoin above $84,690, nearing the whale's liquidation point. However, the whale's strategic margin increase and continued expansion of the short position thwarted the effort. The whale ultimately closed all positions with substantial profits.

While ZachXBT has confirmed the whale's criminal activity, the individual's identity remains undisclosed. Importantly, the investigation cleared the whale of any connection to the notorious Lazarus Group, responsible for significant cyberattacks in the industry.

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