Insider trading: Crypto whale transferred $10 million to Bitfinex exchange before XRP spike
Insider trading: Crypto whale transferred $10 million to Bitfinex exchange before XRP spike
A cryptocurrency whale, believed to be the owner of the 0xd275 wallet, is suspected of insider trading after a suspicious transaction was recorded just before the XRP rally.
The unidentified investor borrowed $10 million from decentralized platform Aave. He sent these funds to the Bitfinex exchange 16 hours before the significant jump in the price of XRP, which caused the price of other coins to rise as well.
The crypto whale then withdrew 300 WBTC worth about $9.4 million from Bitfinex seven hours before the record jump, Cryptonews reported.
XRP jumped about 80% after a controversial federal court ruling on Ripple's lawsuit against the SEC. Lawyers perceived the decision as generally positive, prompting many cryptocurrencies to bring XRP back to the platform.
The sequence of transactions from cryptocurrency wallet 0xd275 raised many questions about potential insider information, but it's also possible that the whale was simply speculating based on publicly available information or market trends.
Recall that we previously wrote about Kraken and Crypto.com resuming XRP trading.
