Convicted Fraudster William Parker Makes Millions in Crypto Leveraged Trades

An anonymous crypto trader who made millions through leveraged trading has been identified as William Parker, a convicted fraudster, according to blockchain investigator ZachXBT. Parker's trading activities included a $6.8 million gain from a long position on Bitcoin (BTC) just before a significant market announcement, followed by a $9 million profit from a short position on BTC as the market reversed. All of Parker's positions were executed with 50x leverage, a high-risk strategy that places the liquidation price of a position close to the entry point.

Parker's trading activities were not limited to leveraged positions. On-chain data suggests that the wallet frequently interacted with various crypto-based online casinos, indicating a history of high-risk gambling. Additionally, the wallet connected to the trades was set as the drainer fee receiver on a phishing website in January, receiving $17,100 from a phishing draining customer in the same month.

ZachXBT's investigation revealed that the trader's initial funding came from an input validation exploit on a casino game. The exploiter negotiated payouts via a now-deleted Telegram account, which ZachXBT linked to Parker’s phone number. Parker's criminal activities date back to the early 2010s, when he faced fraud charges in the UK for hacking and gambling-related crimes. Last year, he was arrested in Finland for stealing $903,000 from two online casinos by manipulating game outcomes.

Parker's trading activities gained notoriety in March after executing two massive leveraged trades. The first was a 50x leveraged Ethereum and Bitcoin long position, resulting in a $10 million gain. Another short position on BTC with 40x leverage earned him an extra $9 million. Adding to the controversy, the trader liquidated a $340 million ETH long position on Hyperliquid, walking away with some $1.8 million in profit while causing a $4 million dent in the platform’s vault. Initially, there had been rumors that an exploit on Hyperliquid caused the loss, but the exchange quickly clarified that it was the predictable consequence of how its systems operate under extreme conditions.

ZachXBT’s investigations connected the whale’s address to various suspicious accounts on platforms. The sleuth identified the cluster of wallets tied to the whale, including one that received $17,100 from a phishing drainer earlier in the year. He also shared screenshots of the trader admitting to making $20 million through GMX and Hyperliquid trades.

The revelation by ZachXBT has sparked significant attention within the crypto community. The exposure of Parker's activities has raised concerns about the integrity of leveraged trading platforms and the potential for market manipulation by individuals with criminal backgrounds. The incident underscores the need for enhanced security measures and regulatory oversight in the crypto space to prevent such fraudulent activities.