Bitcoin short whale exposed as cybercriminal using stolen funds for high-leverage trades

Key Takeaways

• A crypto whale was identified as a cybercriminal using stolen funds for high-leverage Bitcoin trades.
• The whale secured a $9 million profit despite a coordinated effort to liquidate their short position.

A crypto whale who recently placed a massive short position on Bitcoin has been identified as a cybercriminal using stolen funds for high-leverage trading, according to on-chain investigator ZachXBT.

ZachXBT’s comment follows a failed attempt by a group of traders, led by pseudonymous CBB, to hunt the whale.

According to data tracked by Lookonchain, the whale opened a 40x leveraged short position of 3,940 BTC at $84,040 on March 15, worth over $332 million, with a liquidation point set at $85,300. The position would face liquidation if Bitcoin’s price exceeded this threshold.

The action was quickly on everyone’s radar. Just 24 hours later, pseudonymous trader CBB issued a public call for crypto traders to coordinate a short squeeze, targeting the whale’s liquidation price.

The group managed to drive Bitcoin above $84,690, nearly reaching the liquidation threshold.

Faced with the threat, the whale added $5 million in USDC to increase margin and avoid liquidation. Despite the traders’ efforts, the whale continued to expand the short position. Their hunt was ultimately fruitless.

The crypto whale closed all positions on Tuesday, realizing a profit exceeding $9 million.

While ZachXBT identified the whale as a cybercriminal, he did not reveal their identity.

The investigator confirmed that the individual is not affiliated with the notorious Lazarus Group, known for orchestrating large-scale cyberattacks, including the recent hack targeting crypto exchange Bybit.