An expert has issued a warning that President Donald Trump triggered the latest cryptocurrency crash that managed to wipe out a whopping $18 billion.
The crash came after the president threatened a 100% tariff on China which has led to growing frustration among investors.
This is because there have been reports that one anonymous investor has made around $200 million after betting that the two largest cryptos in the world would drop.
It has also been claimed that this investor lodged this just 30 minutes before Trump announced his plans to place new tariffs on China.
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This caused a ripple effect on the crypto market and has left some wondering whether there has been inside trading happening.
Joshua de Vos, of CoinDesk, who is an industry data provider and publication, explained: “The timing and scale of the positions opened on October 10, immediately prior to the market-wide liquidation, does raise suspicion of information asymmetry.”
He went on to say: “While there is no conclusive evidence of insider trading, the wallet activity shows strong, directional conviction.”
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This isn’t the first time that the Trump administration has been accused of insider trading, as similar allegations came up earlier this year.
Back in April, the president made his ‘liberation day’ tariff announcements that sent stock prices plummeting, leading to multiple Democrats calling for an inquiry to be conducted.
The market later recovered when Trump announced that he was placing a pause on these new tariffs.
Democratic senator Elizabeth Warren wrote a letter at the time to the Securities and Exchange Commission asking for an investigation into the tariffs and whether they had ‘enriched administration insiders and friends at the expense of the American public’.
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Kristalina Georgieva, who is the IMF managing director, issued a warning, saying: “Valuations are heading toward levels we saw during the bullishness about the internet 25 years ago.
“If a sharp correction were to occur, tighter financial conditions could drag down world growth, expose vulnerabilities, and make life especially tough for developing countries.”
Officials from the White House have denied any claims of insider trading but this warning comes as the International Monetary Fund (IMF) autumn summit is set to take place in Washington this week.
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There are concerns that these issues with the stock market could end up dominating discourse at these meetings, with the Bank of England having issued a similar warning recently over extremely high valuations of tech stocks.