Ethereum Trader Linked to ZKasino Scam Loses $27.1M in Hyperliquid Liquidation

An Ethereum trader associated with the controversial gambling platform ZKasino suffered a massive $27.1 million loss after their highly Leveraged ETH long position was liquidated on Hyperliquid. The incident highlights the risks of high-leverage trading and follows allegations of ZKasino’s involvement in a $30 million user fund scam in 2024.

ZKasino Scammer Loses $27.1m on Hyperliquid After ETH Long Position Close

An account linked to ZKasino, a gambling platform accused of stealing over $30 million from users in 2024, has lost $27.1 million after its 20x leveraged long ETH position on Hyperliquid was fully liquidated. According to on-chain data from Hyperdash, the scammer address had its position liquidated, resulting in significant losses. Despite this, the trader still had around $147.38 in unrealized profit and losses. The address is associated with a scammer behind the blockchain gambling platform that reportedly stole around $32 million last year. Traders on social media platform X reacted positively to the news, stating that the scammer got what they deserved.

Crypto’s Global Nature Provides Protection from Tariff Shocks

Crypto markets are being shaped by the same macro forces affecting traditional financial markets, but their international and borderless nature offers a layer of protection, according to Offchain Labs co-founder and chief scientist Edward Felten. Speaking on CNBC’s “Squawk Box Asia,” Felten noted that recent volatility in crypto markets is driven by broader concerns around global trade and economic policy, stemming from uncertainty surrounding U.S. tariffs and comments from President Donald Trump. Offchain Labs is behind Arbitrum, a leading Ethereum (ETH) Layer 2 scaling solution.

Ethereum (ETH) Crashes Amid Selling and Liquidation Pressure, But Whales Buy the Dip

Ethereum (ETH) faced significant selling and liquidation pressure, crashing into the $1,500 range. This caused a series of panic sells and liquidations. Despite the crash, some confident whales returned to buy the dip. ETH reached a daily low of $1,542.17 after the Asian market open and later slipped to $1,448.46, triggering more liquidation levels. The market crash was preceded by at least two significant whales selling coins on centralized exchanges.

Best Crypto to Buy Now – Altcoins to Buy As ETH Trades at a Discount

The entire crypto market has seen a significant drop in value, with Bitcoin falling from its January all-time high of around $106k to less than $75k. Ethereum, the largest altcoin, has caused major concern among investors, weakening weekly and currently trading at around $1,500, a price last seen in 2023. Despite the negative price action, a notable whale trader has opened a long trade on ETH with a leverage of 20x.