Pantera Capital Partner Suggests Off-Chain Asian Entities Behind Recent Crypto Sell-Off

Franklin Bi, a general partner at Pantera Capital, has posited that the recent large-scale sell-offs in the cryptocurrency market were not initiated by a crypto-native trading firm, but rather by a substantial, off-chain Asian entity.

Bi theorizes that this entity, with limited pre-existing relationships within the crypto sphere, operated undetected by the wider community. His analysis suggests a sequence of events involving leveraged trading and market-making on Binance, followed by the unwinding of Yen arbitrage trades, leading to an extreme liquidity crisis. This was reportedly met with a grace period of approximately 90 days.

Further speculation indicates that attempts to recoup losses through gold and silver trading failed, compelling the entity to liquidate its positions this week.

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