In March 2025, blockchain investigator ZachXBT uncovered the trader behind a $20 million profit on the Hyperliquid and GMX platforms. William Parker has garnered attention not only for his trading strategies but due to his alleged criminal history.
Unraveling Complex Trades
ZachXBT's investigation revealed that Parker engaged in high-leverage positions with significant consequences. For instance, he took a $200 million long position on ETH, resulting in a $4 million loss in Hyperliquid's vault. This incident prompted speculation about a potential hack, though the platform clarified that the loss was due to Parker withdrawing funds and reducing margin levels. The transaction netted Parker $1.8 million, while the vault experienced a substantial loss.
Criminal History and DeFi Connection
The investigation also uncovered Parker's criminal past, identifying him as Alistair Packover. In 2023, Parker was convicted for fraudulently stealing $1 million through hacking and phishing tactics against casinos. His unlawful conduct dates back to the early 2010s, with numerous hacking incidents across the UK. In 2017, he exploited a vulnerability in a Solana-based casino game to misappropriate funds, which were then invested in Hyperliquid, resulting in a $20 million profit. The timeline connects his criminal activities to the suspicious on-chain trades.
Hyperliquid's Response
Following the loss incident, Hyperliquid implemented major changes to its risk management policies. The platform adjusted its leverage limits to 40x for Bitcoin and 25x for Ethereum. These measures aim to mitigate risks from high-leverage trades with significant borrowed capital while sustaining platform stability.
ZachXBT's investigation sheds light on complex operations in the DeFi space, underscoring the need for diligent oversight of trading platforms. Hyperliquid's responsive measures can serve as a model for other platforms in enhancing their risk management policies.
