BitForex Founder Garrett Jin Holds $15M Zcash Short Position on Hyperliquid, Report Says

Garrett Jin, the founder of the now-defunct cryptocurrency exchange BitForex, is reportedly holding a significant short position in Zcash (ZEC) on the Hyperliquid platform, according to blockchain analytics firm EmberCN. The position, valued at approximately $15.08 million, was opened nine days ago at an average price of $444 per ZEC. As of the latest data, the trade is underwater, showing an unrealized loss of around $530,000.

Details of the ZEC Short Position

EmberCN identified an address beginning with 0x92ea as likely belonging to Jin. The address has a demonstrated history of profitable ZEC trading, adding credibility to the attribution. The short position was opened as ZEC was trading near $444, but the token has since rallied. According to CoinMarketCap, Zcash is currently trading at $461.41, representing a 24.23% gain over the past seven days. This upward movement has placed Jin’s short position in negative territory.

BitForex Collapse and Jin’s Legal Troubles

BitForex was a cryptocurrency exchange that collapsed in early 2024, leaving users unable to withdraw funds. The platform was subsequently labeled fraudulent by multiple regulatory bodies. Jin has been under scrutiny since the exchange’s failure, with authorities in several jurisdictions investigating the platform’s operations. The revelation of his active trading positions on Hyperliquid provides a rare glimpse into the financial activities of a figure at the center of one of the crypto industry’s notable scandals.

Broader Market Context and BTC Position

EmberCN also reported that Jin holds a long Bitcoin position that has been under pressure. However, the recent market rebound has narrowed the loss on that trade from $23 million to approximately $16 million. The broader crypto market has seen a modest recovery in recent days, with Bitcoin and several altcoins posting gains. Zcash’s rally, in particular, has been notable, driven by renewed interest in privacy-focused cryptocurrencies.

Implications for Creditors and the Crypto Community

The news of Jin’s active trading positions is likely to draw mixed reactions. For creditors of BitForex who lost funds in the exchange’s collapse, the fact that Jin is actively managing large positions may raise questions about asset recovery. For the broader crypto community, it underscores the ongoing opacity surrounding the activities of figures from failed platforms. The use of Hyperliquid, a decentralized perpetual exchange, highlights how even individuals under legal scrutiny can access sophisticated trading tools without traditional financial oversight.

Conclusion

Garrett Jin’s $15 million short position in Zcash on Hyperliquid, now showing a loss, adds another layer to the story of the BitForex collapse. While the trade itself is a relatively small part of a larger narrative, it provides insight into the financial maneuvers of a controversial figure. As the market continues to recover, the performance of Jin’s positions—both the ZEC short and the BTC long—will be watched by those following the aftermath of one of crypto’s most significant exchange failures.

FAQs

Q1: Who is Garrett Jin?
Garrett Jin is the founder of BitForex, a cryptocurrency exchange that collapsed in 2024 and was later labeled fraudulent. He is currently under investigation by multiple regulatory bodies.

Q2: What is Hyperliquid?
Hyperliquid (HYPE) is a decentralized perpetual exchange that allows users to trade cryptocurrency derivatives with leverage. It operates without a central intermediary, offering a high degree of anonymity and accessibility.

Q3: Why is the ZEC short position significant?
The position is significant because it reveals that the founder of a collapsed exchange is actively managing large trading positions, which may have implications for creditors and ongoing investigations. It also demonstrates the use of decentralized platforms by individuals under legal scrutiny.