TLDR
- Garrett Jin denies having insider information related to Trump’s tariffs.
- Jin clarifies that the $150 million short trade was on behalf of his clients.
- Garrett Jin criticizes crypto exchanges for offering excessive leverage.
- Jin calls for a market stabilization fund to support liquidity during crises.
Garrett Jin, a former CEO of a crypto exchange, has recently responded to claims that he made over $150 million by shorting Bitcoin and Ether ahead of President Donald Trump’s tariffs on China. The accusations gained traction after Binance co-founder Changpeng Zhao (CZ) shared an investigative post tying Jin to the trade. While denying insider trading and any links to the Trump family, Jin proposed a market stabilization fund to prevent future crises.
Allegations and the Shorting Trade
Garrett Jin has been accused of profiting from a well-timed short trade on Bitcoin and Ether, shortly before President Trump’s announcement of new tariffs on China. The trade reportedly earned him more than $150 million. The accusations began when an on-chain investigator, Eye, posted data linking Jin to the trade. This included wallet addresses and other details, along with biographical information suggesting Jin’s connection to the now-infamous Hyperliquid short.
Binance co-founder Changpeng Zhao, also known as CZ, retweeted the post, amplifying the allegations. CZ added that he was unsure of the post’s validity and hoped someone would cross-check the information. The tweet gained significant attention, with millions of views, which led to increased scrutiny of Jin.
Jin’s Response and Denial of Insider Trading
In response to the public accusations, Garrett Jin took to social media to clarify his position. He denied any connection to insider trading or the Trump family. Jin addressed CZ directly, thanking him for sharing his personal information, but insisting that his actions were not influenced by any privileged information related to the Trump administration’s tariffs.
Jin further clarified that the fund involved in the trade did not belong to him personally but was managed on behalf of his clients. He stated, “The fund isn’t mine — it’s my clients’. We run nodes and provide in-house insights for them,” distancing himself from any direct personal gain. Despite the backlash, Jin’s response did little to quell the speculation regarding the timing of the trade and the scale of the profits made.
Market Criticism and Proposed Solutions
Amid the controversy surrounding his involvement in the Hyperliquid short, Jin also commented on the broader crypto market. He expressed concerns about the high leverage offered by exchanges on volatile assets that lack intrinsic value. Jin suggested that such leverage, while profitable for exchanges, could lead to significant risks in the event of market instability.
He pointed out that in traditional financial markets, such high leverage is usually restricted to assets with substantial value support and liquidity, such as those in the foreign exchange market. “The deeper issue with the crypto industry is that exchanges offer high leverage on assets that lack intrinsic value — to meet user demand and boost profits,” Jin stated. This critique comes after Friday’s market collapse, which saw massive liquidations and wiped out billions in market value.
The Call for a Stabilization Fund
As part of his proposed solution to the growing volatility in crypto markets, Jin suggested that exchanges should establish a stabilization fund similar to those used in U.S. equity markets. Such funds would help maintain liquidity during times of crisis, providing support for the market and preventing extreme price fluctuations.
“If exchanges continue offering extreme leverage, they should at least implement a stabilization fund-like mechanism, similar to U.S. equities,” Jin stated. He emphasized that this would help restore market trust, encourage capital inflow, and foster healthier market growth.
Jin’s remarks reflect the growing concern over the role of leverage in cryptocurrency markets, especially as the sector faces increased volatility and regulatory scrutiny. With the crypto industry still in its developmental stages, the implementation of such mechanisms could offer a way to stabilize the market and safeguard investor interests.
In the midst of these events, the crypto community remains divided on Jin’s involvement in the Hyperliquid trade and the broader implications for the industry. However, his call for reform and a more secure trading environment has gained attention as exchanges and regulators continue to examine ways to address the risks associated with high-leverage trading.
