Examination Links 100K BTC Hyperliquid whale to Former BitForex CEO
A whale account on the Hyperliquid derivatives exchange, controlling approximately 100,000 Bitcoin (BTC) worth over $6.2 billion, is under scrutiny following allegations linking it to Zhao Dong, the former CEO of the collapsed cryptocurrency exchange BitForex. The connection, highlighted by on-chain analyst ZachXBT, centers around patterns of market manipulation and potential ties to funds misappropriated from BitForex users.
The investigation alleges that the whale account engaged in suspicious trading activity on Hyperliquid, specifically exploiting a liquidation cascade on January 26th. This event followed a similar pattern observed during the BitForex collapse in February 2023, where users reported being unable to withdraw funds, with estimates of losses reaching millions of dollars and prompting a police investigation into suspected fraud. zhao Dong afterward launched several ventures – WaveLabs VC (2020), TanglePay (2021), IotaBee (2022), and GroupFi (2023) – all of which have largely ceased operation.
in 2024,dong launched XHash.com,an Ethereum staking platform,which investigators now believe may have been used to funnel suspicious funds. Dong reportedly removed XHash from his social media profiles after the allegations surfaced, though it remains visible on his Telegram account. The core of the connection lies in a .eth domain name associated with the Hyperliquid whale wallet, which ZachXBT alleges is linked to wallets previously associated with Dong and the BitForex fallout.
However, not all analysts are convinced. Cryptocurrency analyst Quinten François expressed skepticism, suggesting the evidence “might potentially be too conveniently tailored,” questioning why a user involved in alleged market manipulation would directly link their activity to identifiable wallets.
