A major outflow of funds occurred on Monday as investors pulled their money from the cryptocurrency exchange Hyperliquid, following concerns that North Korean hackers may be actively trading on the platform.
Security expert Taylor Monahan, from the digital wallet provider MetaMask, raised alarms over suspicious digital wallets linked to hackers trading on Hyperliquid since October. Monahan shared wallet addresses and activity on X (formerly Twitter), suggesting that North Korean hackers might be testing for security weaknesses on platforms like Hyperliquid.
The post ignited a firestorm of debate online, with some Hyperliquid supporters criticizing Monahan for fearmongering. Meanwhile, the platform saw a massive withdrawal of funds.
Using data from the venture capital firm Hashed on Dune Analytics, Bloomberg reported that over $112 million in USDC stablecoins had been withdrawn from Hyperliquid on that day alone. Additionally, the price of Hyperliquid’s token, HYPE, dropped by 20%.
Hyperliquid’s co-founder, Jeff Yan, did not respond to Bloomberg‘s request for comment.
On the same day, CoinDesk also reported a net outflow of over $60 million in USDC from Hyperliquid. It raised suspicions that North Korean hackers were operating on the platform.
According to Bloomberg and CoinDesk, Hyperliquid is a decentralized exchange built on its own blockchain, primarily focused on trading in cryptocurrency derivatives.
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