House Targets Hyperliquid in Insider Trading Probe, Cites $1.1B Crypto Short Before Trump Tariffs

House Oversight Chairman James Comer (R-Ky.) expanded the committee’s prediction market insider trading investigation Tuesday to Hyperliquid Labs, citing a $1.1 billion crypto short opened before President Donald Trump announced new tariffs on China last year.

Comer sent letters to Hyperliquid Labs, Crypto.com and Aristotle Exchange, which operates PredictIt, seeking records on identity verification and how the platforms detect suspicious trading involving nonpublic or classified information. The companies have until Oct. 13 to respond.

Comer also questioned whether Hyperliquid had adequate identity checks or a clear process for referring suspicious traders to U.S. law enforcement.

The letter does not identify the trader or say Congress has established that the trader knew about Trump’s decision in advance.

Trader Made More Than $150M on Crypto Short

The trader built a roughly $1.1 billion short across Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) perpetual futures—leveraged crypto derivatives that have no expiry date—about 30 hours before Trump’s announcement, according to an analysis cited by Congress.

The Block reported that the trader continued adding to the position until just before the announcement, with the final short placed about one minute before Trump’s Truth Social post, and that the trade generated more than $150 million in profit.