Former CEO Arthur Hayes of BitMEX, one of the famous players in the crypto market, has just made a move that has the community talking. According to data from Lookonchain, he sold $8.4 million worth of Ethena's ENA tokens on Binance, just 2 hours after praising the project in a tweet.
From November 26 to 28, Arthur quietly built a position of 16.79 million ENA tokens at $0.67 per token, totaling $11.21 million at the time. He then sold these coins at $0.7, generating a substantial profit of $7.7 million.
Arthur still holds 9.96 million ENA, worth $11.7 million, of which 7.94 million are Staked. His current holdings have generated a total profit of $8.71 million, an increase of 78%.
Before Arthur's sell-off, ENA's price had risen more than 25% in a week, reaching $0.7 on December 21, driven by increased demand and speculation.
Arthur wrote:
"I can nitpick a few things, but this is a very impressive summary of Ethena Labs. If you are a DeFi protocol and you haven't integrated USDe or sUSDe, then you are doing it wrong".
However, the comments under this tweet later became chaotic. People called him a clown and accused him of insider trading and market manipulation. This is not the first time Arthur has faced such allegations.
Ethena's synthetic dollar stablecoin, USDe, has become a standout feature of the platform. In one week, it has generated an astonishing yield of up to 67% for stakers, making traditional stablecoins like USDT seem outdated.
We cannot deny that Arthur's endorsement has added credibility to the project, even if his subsequent actions have shaken confidence. But it is clear that Arthur knows how to take profits at the right time, as we have seen.
While a savvy trader, Arthur has faced numerous legal troubles. BitMEX was once a force in the cryptocurrency Derivative trading, but the company has also faced allegations of operating an "insider trading desk".
The allegations claim that employees were given access to accounts to profit from customer's private data. Many have criticized this, saying it turned the market into a playground for insiders while still exposing information to regular traders.
Additionally, BitMEX has been accused of manipulating index prices on low-liquidity exchanges to trigger Liquidations. These allegations have painted a picture of a company willing to disregard user interests for its own gain.
Arthur and the other co-founders are embroiled in multiple lawsuits and regulatory oversight. The U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice (DoJ) have charged them with violating the Bank Secrecy Act, accusing BitMEX of "facilitating illegal transactions and lacking appropriate anti-money laundering protocols".
A U.S. court has refused to dismiss the class-action lawsuit against BitMEX in April, leaving the allegations of price manipulation and insider trading still standing.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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Dinh Dinh
According to Cryptopolitan
