Key Takeaways
- A trader has been accused of using insider information after placing large bets on Polymarket predicting Trump’s pardon of CZ.
- The same wallet had reportedly previously made hundreds of millions shorting Bitcoin against Trump’s tariffs.
- Some users have pushed back against the allegations online.
Famed crypto investigator Coffeezilla has raised allegations of insider trading after a trader appeared to win big on U.S. President Donald Trump’s pardon of Binance founder Changpeng “CZ” Zhao.
The wallet is linked to a Hyperliquid whale who recently faced insider allegations after making $160 million by shorting Bitcoin shortly before Trump’s tariff announcement triggered a major crypto crash.
Insider Trading Allegations
Coffeezilla, who has amassed millions of followers for exposing crypto scams, shared a post on X detailing the Polymarket account under the username “bigwinner01.”
The account placed a high-value position on the market titled “Will Trump pardon CZ in 2025?” just hours before the news broke.
According to the screenshot, the account made a profit of roughly $56,696.83, marking a 199% gain.
Coffeezilla alleged that the wallet is connected to a well-known trader on the Hyperliquid exchange who previously made $190 million shorting the market ahead of market-moving Trump tweets.
“Looking like obvious insider knowledge,” Coffeezilla wrote on X.
“Remember that HyperLiquid whale that shorted the market and made $190 million because of Trump tweets a few hours later?”
The crypto wallet tied to the recent Polymarket activity first drew widespread attention earlier this year after reportedly profiting about $160 million by betting against Bitcoin shortly before a major U.S. trade announcement.
According to on-chain data, the trader opened significant short positions on the Hyperliquid exchange only hours before Trump revealed new tariff measures.
The timing of the trade prompted the nickname “Trump Insider.”
Community Pushback
The claims, which have not been proven, have received pushback from some of the online community for lacking substance.
One X user wrote: “You really think someone with access to the President of the United States would use insider information to make $56,000?”
Adding: “Everyone has been talking about this pardon forever. It wasn’t exactly an extremely unlikely event.”
Another wrote: “You really need to provide some substance behind this tweet, wallet addresses, dates, inflows… something.”
White House Confirms Pardon
The White House confirmed Thursday that Trump had signed a presidential pardon for Zhao.
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency,” Press Secretary Karoline Leavitt said in a statement.
The move comes after Trump spoke sympathetically about Zhao’s convictions, according to The Wall Street Journal, which cited one person familiar with the matter.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
