Hyperliquid Faces $256M Outflow Amid North Korean Hacker Allegations

Hyperliquid, a recently launched layer-1 crypto derivatives platform, has experienced a significant outflow of funds following allegations that North Korean hackers exploited the platform.

On December 23, security researcher Tay Monahan claimed that hackers linked to the Democratic People’s Republic of Korea (DPRK) had been using Hyperliquid since October.

$256 Million Withdrawn in 30 Hours

In the wake of these allegations, over $256 million was withdrawn from Hyperliquid within 30 hours, with the platform’s outflows peaking at $502.71 million on December 23. In contrast, inflows amounted to $253.5 million, indicating a significant impact on the platform’s liquidity.

Hyperliquid Responds to Allegations

Despite the claims, Hyperliquid reassured users, stating that no exploits occurred and that all user funds were accounted for. The platform’s response on its Discord server sought to quell fears and assure the market of its security measures. As of now, no confirmed exploit has been reported, though concerns continue to circulate.

Key Points:

• $256 Million Withdrawn: Over $256 million was withdrawn from Hyperliquid within 30 hours following the allegations.

• Platform’s Response: Hyperliquid reassured users that no exploits occurred and all funds were accounted for.

• Ongoing Concerns: Despite the platform’s reassurances, concerns about potential security vulnerabilities persist.

This incident highlights the growing concerns around security vulnerabilities in crypto platforms, especially with increasing involvement from state-backed actors in the crypto space. North Korean hackers have been known to target cryptocurrency platforms, with an estimated $3 billion worth of cryptocurrency stolen since 2017 to support the regime’s nuclear and missile programs.

The Hyperliquid incident underscores the need for robust security measures and transparency within the cryptocurrency industry to protect users and maintain trust.