US Congress Investigates 3 Cryptocurrency Platforms in Suspicious Trading Case

The House Oversight Committee has expanded its investigation into suspicious trading in prediction markets, targeting Hyperliquid, Crypto.com, and Aristotle Exchange. The focus of the investigation is a $1.1 billion short trade on Hyperliquid that occurred one minute before Donald Trump's announcement of new tariffs against China. James Comer, the chairman of the Oversight Committee, has requested that these three platforms provide details on their customer identification mechanisms and how they identify suspicious transactions. A trader on Hyperliquid opened a short position worth $1.1 billion on Bitcoin and Ethereum before the announcement of the new tariffs and increased the size of their position one minute before Trump's post. This trade resulted in the liquidation of approximately $19 billion in leveraged positions in the market and generated over $150 million in profit. On-chain investigations have linked this wallet to Garrett Jin, the former CEO of Bitforex. Comer also referenced his previous investigations into Kalshi and Polymarket, requesting explanations from Crypto.com and PredictIt regarding their customer identification processes and tools for identifying suspicious transactions.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.