A Blockchain forensics company called "ChainAnalysis" posted a message on Twitter, instantly detonating the entire financial circle.
"According to our Fund Flow tracking system, we have reason to believe that a large number of Bitcoin's mysterious accounts have been liquidated at a high level of 17000 US Dollar recently.
It is highly related to the new shareholder Times Pioneer Capital of Tesla disclosed today."
The tweet was retweeted more than three thousand times in ten minutes.
ChainAnalysis is the most well-known Blockchain forensics company in the industry, specializing in tracking transactions on the Bitcoin chain.
They claimed that by analyzing the on-chain data of Bitcoin, they discovered that the whale account liquidated 350,000 Bitcoin at an average price of 17,000 US Dollar in mid-December.
Its funds eventually flowed to several Offshore Accounts related to Times Pioneer Capital.
The moment the news spread, Tesla's stock price plummeted from 333 US Dollar to 325 US Dollar within five minutes.
The market was shocked.
It's not that you are shocked that someone is selling Bitcoin--there are giant whales entering and exiting the Bitcoin market every day.
What's really shocking is that the whale who sold Bitcoin actually used the money he earned to buy Tesla.
What does this mean?
This means that the rise in the stock price of Tesla in the past week is based on a "speculative profit of Bitcoin".
If there is a problem with this fund, if the SEC intervenes in the investigation, if Era Vanguard is forced to sell...
Wall Street had these thoughts flashing through his mind at the same time, and then collectively made the same action - sell.
Tesla stock price continues to fall, from 325 US Dollar to 322 US Dollar, to 320 US Dollar, to 318 US Dollar.
Chen Xi pressed his fingers on the keyboard, his face turned pale. "Zhao Zong, do you want to answer it?"
Zhao Chen looked at the rapidly jumping numbers on the screen, his expression unchanged.
"Don't accept it. Let them sell it."
Su Wantang asked from the side, "What if it falls below our cost line?"
Zhao Chen thought for a while, "No. The market was just frightened. It's not Tesla's Fundamentals that has a problem. When the panic passes, the stock price will come back."
He paused and then said, "Moreover, if we take the order now, it means telling the market that we feel guilty. If we don't take it, it shows that we have the confidence."
Chen Xi let go of the keyboard and took a deep breath.
At four o'clock in the afternoon, US Stocks closed.
Tesla's stock price closed at 319.50 US Dollar, down nearly 14 US Dollar from its intraday high, but barely holding on to the 319 US Dollar mark.
Trading volume throughout the day was five times higher than usual.
The name Times Pioneer Capital was passed from Wall Street to Silicon Valley, and from Silicon Valley to Beijing.
The domestic response was faster than Zhao Chen expected.
On the morning of January 16, the headlines on Financial Media in China were almost all about the same topic:
"The mysterious organization 'Era Vanguard' spent 2 billion US Dollar to buy Tesla, becoming the third Major Shareholder."
"The mastermind behind the Bitcoin market crash has surfaced? 'Era Vanguard' is accused of being the culprit of the Bitcoin plunge in December."
"Who is in control of this fund registered at Cayman Islands?"
Caixin's article is relatively restrained, but the title is eye-catching enough:
""Era Vanguard": Genius investor or market manipulator?"
First Finance's report focused more on Capital Chain's analysis:
"'Era Vanguard' fund was established at the end of 2016 and was registered at Cayman Islands. The actual controller behind it remains a mystery.
In just one year, the fund accumulated a huge fortune through Bitcoin trading, and now it has begun buying Tesla shares in large quantities.
The source of the money and the identity of the trader behind it have triggered widespread speculation in the market."
21st Century Business Herald's title is even more cruel:
"Bitcoin giant whale surfaces: "Era Vanguard"'s tens of billions of bets, the identity of the trader remains a mystery".
The article details all the public operations of the "Era Vanguard" fund in the past year--
From the huge purchase of Bitcoin to the precise liquidation at a high of 17000 US Dollar, and now the large purchase of Tesla stock.
Every time point and every operation is put under a microscope.
The article ends with:
"If ChainAnalysis's accusation is true, then the profit of 'Era Vanguard' on Bitcoin is conservatively estimated to be more than 8 billion US Dollar.
This mysterious fund, which was established only one year ago, completed its transformation from a "newcomer" to a "giant whale" in just one year.
Who is the trader behind it? How can he hit every node so accurately? Is this a genius' investment vision, or is there something else hidden?"
This article was forwarded like crazy in Moments.
The name "Era Vanguard" spread back to China from Wall Street for the first time, spreading from the financial circle to Volkswagen's horizons.
But no one knows who the actual controller of this fund is.
The company structure registered at Cayman Islands, with multiple layers of Offshore Account and Fund Path, blocks out all those who try to trace the source.
The market only knows the name "Era Vanguard", knows that it bought Tesla, and knows that it may be the whale that smashed Bitcoin.
But who owns it, where its money comes from, and what it's going to do next - no one knows.
Zhao Chen looked at these reports on his mobile phone, and the corners of his mouth curled up slightly.
"Era Vanguard"--This is the name of the fund he asked Zhang Qingxue to register at Cayman Islands.
Multi-layer architecture, Offshore Account, separated by at least three firewalls.
From "Era Vanguard" to Zhao Chen, there are four different legal entities and trust structures in two different jurisdictions.
Unless someone takes the initiative to report it, no one can connect the two.
Chen Xi asked from the side, "Zhao Zong, the domestic media are all guessing who 'Era Vanguard' is, but no one has mentioned you."
Zhao Chen nodded. "Normal. The firewall is thick enough."
Su Wantang asked, "What about the SEC? Will they investigate?"
Zhao Chen thought for a while and shook his head, "Probably not for the time being."
He pointed to the ChainAnalysis accusation on his computer screen:
"This company's report is, to put it bluntly, just an 'on-chain analysis'.
The on-chain data of Bitcoin is public, but something like 'Fund Flow' can only prove that the money from a certain address went to a certain address, but cannot directly prove who is behind that address.
If the SEC wants to open a case for investigation, it needs not only data on the chain, but also solid evidence--
For example, the exchange's KYC records and bank account transfer vouchers. They can't get these things."
He paused. "Moreover, 'Era Vanguard' holds only 5.95% of the shares, which is passive Financial Investment.
We did not seek Board of Directors Seat, did not interfere in the company's operations, and did not engage in insider trading.
The SEC has no reason to specifically investigate a passive investor."
Chen Xi breathed a sigh of relief, "That's good."
Zhao Chen's expression did not relax:
"But public opinion will not pass so quickly. ChainAnalysis's accusations have exploded in the market.
Those Short Selling Tesla and Hedge Fund will definitely take this opportunity to exaggerate.
Their purpose is not to have the SEC investigate us, but to panic the market, force us to sell, and suppress the stock price."
Su Wantang asked, "Then what should we do?"
Zhao Chen thought for a while, "We are not the only bulls in the market, and other bulls will react soon."
Then he paused again, "If no one moves US Stocks when it opens at night, we can just continue to build positions."