Crypto Insider Trading? Hegic’s WHITE Token Trades Might Attract SEC’s Attention, Experts Say

Hegic, a platform for trading crypto options on the Ethereum blockchain, could reap $17 million because of a highly profitable trading strategy executed by its pseudonymous developer, Molly Wintermute. She’s the sole developer for Hegic and its less popular platform, Whiteheart.

Late last month, Molly gave up on developing Whiteheart. In a message on the Discord server that Hegic and Whiteheart share, Molly said Whiteheart would return its $28 million treasury to investors and shut down.

The redemption news caused Whiteheart’s token to rally sixfold to $3,500 under heavy buying pressure from arbitrageurs eager for a piece of the treasury liquidation, a process Hegic is facilitating.

But no one is profiting more than Hegic. That protocol’s treasury, which is separate from Whiteheart’s, bought nearly a third of WHITE’s token supply three days before the shutdown announcement, according to blockchain data. Between that purchase and another in September, it can lay claim to almost half of Whiteheart’s treasury: $17 million of ether (ETH).

Source: Crypto Insider Trading? Hegic’s WHITE Token Trades Might Attract SEC’s Attention, Experts Say