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The crypto world is currently buzzing with a developing story: an infamous trader known as the ‘Hyperliquid whale’ has issued a public defense against serious cybercrime allegations. These claims were initially brought forth by none other than on-chain investigator ZachXBT.

The accusation from ZachXBT landed on Tuesday, directly targeting the crypto whale – who now goes by the X handle @qwatio and the name MELANIA – alleging involvement in illicit cyber activities.

This dramatic turn of events followed the trader’s audacious move to open a massive $445 million short position on Bitcoin, leveraging it 40 times over in a bet against the cryptocurrency’s price. This position immediately became a focal point in the market, leading other traders to attempt a “short squeeze,” though their efforts ultimately proved unsuccessful.

Remarkably, the crypto whale managed to navigate the volatile market conditions, skillfully avoiding liquidation despite being aggressively “hunted.” They ultimately closed the position on Tuesday, walking away with a profit exceeding $9 million.

However, amidst the community’s intrigue with the so-called ‘Hyperliquid whale’s trading prowess, ZachXBT dropped a contrasting perspective: this individual, he asserted, was simply gambling with funds of illicit origin.

At the time of his report, the analyst refrained from revealing the trader’s identity but did clarify that there was no indication of a connection to the notorious Lazarus Group.

Then, on Wednesday, the Hyperliquid whale responded directly on X, firmly denying these accusations. The trader directly confronted ZachXBT’s claims that they were utilizing stolen funds for their high-stakes, high-leverage trades.

“RE: Baseless speculations,” the trader stated, challenging ZachXBT to specify precisely which stolen funds were being referenced, and pointed out that their wallet had received thousands of transactions from numerous, admittedly questionable, sources.

In response to this challenge, ZachXBT announced plans to publicly release detailed evidence, scheduled for 1 PM UTC the following day.

Adding another layer to the developing narrative, the investigator also presented preliminary evidence suggesting that the Hyperliquid whale’s X account was a recent acquisition.

Furthermore, ZachXBT offered initial hints pointing towards the trader’s wallet receiving funds that originated from victims of wallet-draining malware attacks as far back as January 2025.

ZachXBT’s findings also indicated that the wallet had received funds from potentially illegitimate sources, including unregulated exchanges and online casinos – entities often associated with money laundering operations.

Adding to their portfolio of activity, it’s also noted that the trader had opened a 5x leveraged long position on the MELANIA token, a position they still maintain, according to data from Hypurrscan data.

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