ZachXBT reveals the supposed hypocrisy and misleading strategies of high-risk trader James Wynn at Hyperliquid.

Blockchain investigator ZachXBT has accused trader James Wynn of hypocrisy regarding his trading practices.

In a recent statement on social media, ZachXBT claimed that Wynn, who recently criticized scam tokens associated with his name, had previously participated in similar speculative trading schemes known as pump-and-dumps, particularly with memecoins.

This dispute began when Wynn alerted his followers about a token released under his name, asserting that an entity he labeled “the cabal” was misusing his identity to promote fraudulent projects.

He asserted:

“The cabal are launching coins in my name and rugging them. This is a heavily farmed coin and will go to zero. Do not buy.”

Nonetheless, ZachXBT countered this claim, stating that Wynn had himself promoted and subsequently sold off various low-cap tokens in the past.

The investigator accused Wynn of “gambling with illicit funds” on Hyperliquid, suggesting that he profited from questionable transactions while publicly decrying such behavior.

James Wynn’s Profile

Wynn is known as a high-stakes leverage trader who has rapidly gained attention in the crypto community over recent months.

His bold trading activities on Hyperliquid, a decentralized derivatives exchange, have drawn significant notice, especially after he leveraged a 40x position on Bitcoin as it approached new record highs.

This past weekend, he executed trades worth billions on both the long and short sides of the market, garnering even more media coverage.

Recent data from a blockchain analytics service indicates that he completed 39 trades in the last three months, achieving profit in 17 of them, equating to a 45% success rate.

This trading activity generated over $2 million in fees for the decentralized platform, yielding Wynn an impressive profit exceeding $25 million.

Besides his trading exploits, Wynn has portrayed himself as a proponent of decentralization and ethical practices within the industry.

He previously turned down a $1 million monthly offer from Bybit, citing issues with centralized exchanges. Instead, he endorsed Hyperliquid, stating:

“[Hyperliquid] is our only choice to revive the trust in this industry.”

Past Allegations Resurfaced

Despite his strong stance against scams, Wynn’s past has raised questions about his credibility.

In 2024, a crypto user named Dylan shared a thread alleging that Wynn had surreptitiously sought private allocations in the BabyPepe token.

Accompanying screenshots purportedly showed Wynn asking for 2% of the token supply in exchange for supporting its ascent to a $20 million market cap.

After briefly addressing this in his Telegram group, Wynn reportedly sold the tokens for a quick profit of $68,000 and subsequently cut off communication with the team.

In addition to BabyPepe, Wynn has faced criticism for promoting other low-cap tokens such as ELON and WYNN, which are also purportedly linked to him.

Moreover, he’s been associated with Alameda Research, the now-defunct market-making entity of the failed FTX exchange.

Sunil Kavuri, an activist for FTX creditors, indicated that Wynn’s early wallets received ETH from Alameda, suggesting he may have gained from insider information.

Kavuri mentioned that Wynn obtained 6,000 ETH from Alameda in 2020, asserting that this initial funding has supported his memecoin trading and substantial market positions that currently characterize his image.

Kavuri observed:

“James Wynn trades like Alameda on steroids because he probably was a trader there.”