Hyperliquied Faces $250M Outflow After N. Korea Hacker Claim

As a seasoned crypto investor with over a decade of experience under my belt, I’ve seen my fair share of market turbulence and platform vulnerabilities. The recent events surrounding Hyperliquid have caught my attention, and not in a good way.

The cryptocurrency derivative platform, Hyperliquid, has seen its greatest net withdrawals totaling over $250 million, following worries about potential cyberattacks linked to North Korean hackers.

Based on findings from cybersecurity researcher Tay Monahan at Metamask, it has been discovered that hacking groups believed to be associated with North Korea’s Democratic People’s Republic (DPRK) have been actively utilizing the platform since October.

On December 23rd, Monahan published her discoveries on X (previously known as Twitter), cautioning that North Korean hackers do not engage in trading but rather explore systems for potential weaknesses.

On December 23rd, a surge of doubt was set off as Hyperliquid experienced record-breaking net withdrawals amounting to $502.7 million, even though there were inflows totaling over $253.5 million. These numbers were corroborated by Dune Analytics.

To alleviate concerns, Hyperliquid reassured its users on their Discord channel that no money was stolen and there was no security breach related to the DPRK wallets. The team underscored that all users’ assets remain safe.

Nevertheless, Monahan’s post caused quite a stir, leading to a substantial decline in the value of Hyperliquid’s native token, HYPE. Originally priced at $35 on December 22nd, it has since dropped by 20%, now being traded at $28.

Some found fault with Monahan for stirring up alarm, but others supported her knowledge, recognizing the gravity of the predicament considering North Korea’s past cyberattacks and theft of billions in cryptocurrency.

In light of the Lazarus Group from North Korea being linked to various significant cryptocurrency heists, it’s vital for Hyperliquid to provide an effective response to restore user confidence and ensure the stability of their platform.

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2024-12-24 10:44