Published: Sunday, October 12, 2025 · 2:50 PM | Updated: Sunday, October 12, 2025 · 2:50 PM
📊 360 views
A cryptocurrency crash triggered by Donald Trump’s threat of 100pc tariffs on China has unleashed fresh claims of insider trading.
There is growing anger among crypto investors after reports claimed that an anonymous investor made up to $200m (£150m) by betting that the world’s two biggest digital currencies would fall.
It has been alleged that the trader lodged their so-called short position in Bitcoin and Ether around 30 minutes before the US president announced plans to levy fresh tariffs on China.
Not only did Mr Trump’s threat reignite a trade war between the two countries, but it also rattled markets and led to around $400bn being wiped off the value of the crypto market in less than 24 hours.
The timing of the investor’s short position has since raised questions over whether they were privy to inside information from the White House.
Joshua de Vos, of CoinDesk, an industry data provider and publication, said: “The timing and scale of the positions opened on October 10, immediately prior to the market-wide liquidation, does raise suspicion of information asymmetry.”
He added: “While there is no conclusive evidence of insider trading, the wallet activity shows strong, directional conviction.”
Cryptocurrencies have struggled to recover since Mr Trump’s announcement, with Bitcoin still down by 8.5pc from Friday, while Ethereum is also trading 12.8pc lower. Dogecoin is down 26.3pc.
The US president’s unexpected tariffs threat was in retaliation to China’s decision to introduce new export controls on global supplies of rare earths and critical minerals, which was announced just days earlier.
However, Beijing appears to have softened its stance over the weekend, with some investment experts questioning whether the market sell-off was triggered by a brief geopolitical misunderstanding.
Meanwhile, the latest bout of scrutiny comes after Mr Trump’s administration was also caught up in claims of insider trading back in April.
Several Democrats called for an inquiry after the president’s “liberation day” tariffs announcement on April 2 sent stocks plunging around the world, only to swiftly recover after Mr Trump announced a pause.
At the time, Elizabeth Warren, a Democratic senator, wrote a letter to the Securities and Exchange Commission urging it to investigate whether Mr Trump’s tariffs about-turn had “enriched administration insiders and friends at the expense of the American public”.
Senior White House officials have repeatedly denied claims of insider trading.
It comes as global policymakers and finance ministers gather in Washington this week to attend the International Monetary Fund (IMF) autumn summit.
Worries about a looming stock market correction sparked by an AI bubble are expected to dominate at the meetings.
Kristalina Georgieva, the IMF managing director, warned on Wednesday ahead of the meetings that things could get ugly quickly, with the market bearing echoes of the dotcom bubble.
She said: “Valuations are heading toward levels we saw during the bullishness about the internet 25 years ago.
“If a sharp correction were to occur, tighter financial conditions could drag down world growth, expose vulnerabilities, and make life especially tough for developing countries.”
The Bank of England also issued a similar warning last week, questioning whether tech stocks could live up to extremely high valuations.
Such concerns are compounded by investors dumping shares in the world’s largest money managers over fears that their $3tn push into private credit is headed for trouble.
MORE IN INSIDE CRYPTO
Bitcoin price steadies but fresh fears suggest slide to $52k
Published: Thursday, February 12, 2026 · 10:12 AM
This 1 Quantum Computing Rumor Is Making Investors Sell Their Bitcoin. Don’t Fall for It
Published: Thursday, February 12, 2026 · 9:20 AM
