BitForex Founder Garrett Jin Reportedly Loses Over $200M on ETH Long Position

New on-chain data has surfaced linking a significant trading loss to the founder of the now-defunct cryptocurrency exchange BitForex. According to a report from Wu Blockchain, an address suspected to belong to Garrett Jin, the founder of the fraudulent exchange BitForex, suffered a loss exceeding $200 million on an Ethereum (ETH) long position.

Details of the Trading Activity

The wallet in question reportedly engaged in a series of high-stakes trades. While the address managed to generate a profit of approximately $100 million from a Bitcoin (BTC) short position, this gain was entirely wiped out—and more—by a catastrophic long position on Ethereum. The net result of these combined trades was a loss of approximately $128 million.

Analysts following the wallet noted that had Jin refrained from trading ETH, he could have realized a net profit of over $70 million from the Bitcoin trade alone. The decision to open the ETH long appears to have backfired dramatically, highlighting the extreme risks associated with leveraged trading, even for individuals with access to substantial capital.

Additional Trades and Market Impact

Further investigation by blockchain analysts has revealed that another address linked to the same entity has recently been active in the market. This secondary address reportedly purchased $10 million worth of HYPE tokens and simultaneously opened a substantial $38 million short position on Zcash (ZEC).

These moves suggest a pattern of aggressive, high-conviction trading that is not typically associated with a founder who is the subject of an ongoing fraud investigation. The timing of these trades is also notable, occurring while BitForex remains under scrutiny for allegedly defrauding its users.

Why This Matters to the Crypto Community

This story is significant for several reasons. First, it provides a rare, on-chain glimpse into the personal financial activities of an individual accused of orchestrating a major exchange collapse. Second, the scale of the loss—over $200 million—underscores the volatility and risk inherent in the cryptocurrency market, even for those with deep pockets. Finally, it raises questions about the whereabouts and financial status of Jin, who has largely remained out of the public eye since the BitForex scandal broke.

For victims of the BitForex collapse, the news that the founder was engaging in multi-million dollar trades may add to the frustration and sense of injustice, as user funds remain frozen. The incident serves as a stark reminder that the crypto industry still lacks sufficient oversight to prevent such situations.

Conclusion

The reported trading losses of BitForex founder Garrett Jin, totaling over $128 million net, represent a dramatic turn in a story already marked by fraud and user losses. While the profits from a Bitcoin short were substantial, they were dwarfed by the losses from an Ethereum long. The situation continues to develop, and further on-chain analysis may reveal more about the movement of funds and the current status of the individuals involved.

FAQs

Q1: Who is Garrett Jin?
Garrett Jin is the founder of BitForex, a cryptocurrency exchange that was accused of fraud and ceased operations, leaving users unable to withdraw their funds.

Q2: How did the trading loss occur?
According to on-chain data, an address linked to Jin opened a large long position on Ethereum (ETH) that was liquidated, resulting in a loss of over $200 million. This loss offset a $100 million profit from a Bitcoin short.

Q3: What is the significance of the other trades mentioned?
An associated address reportedly bought $10 million worth of HYPE tokens and opened a $38 million short position on Zcash (ZEC). This suggests ongoing, active trading by the entity, which is notable given the ongoing investigation into BitForex.