- Despite large withdrawals and a decline in token value, Hyperliquid Labs assures customers that all monies are safe and refutes claims of North Korean hacking.
Following allegations of wallet activity connected to North Korean hackers, Hyperliquid, a well-known on-chain perpetual futures exchange, is coming under fire.
The platform token HYPE fell more than 25% after the accusation, from $34 to $25. Users received assurances from the platform that their money was safe and accounted for.
Misunderstanding or Security Dispute? Hyperliquid’s Reaction to North Korean Hacker Allegations
When Taylor Monahan, a MetaMask security specialist, revealed questionable transactions involving wallets connected to North Korean hackers, the uproar started.
These wallets made almost $700,000 in liquidations by trading Ethereum on Hyperliquid.
Monahan said on X (previously Twitter) that the activity was maybe vulnerability testing rather than normal trade. DPRK is not a trader. DPRK examinations.
Widespread user withdrawals were caused by the accusations. More than $194 million in USDC was taken out on Monday alone, according to data from Hashed’s Dune Analytics dashboard.
Hyperliquid Labs responded by denying that the platform has any vulnerabilities or exploits. The team assured users in a statement posted on its Discord channel that the money was safe.
Despite allegations of activity by purported DPRK addresses, Hyperliquid Labs is aware that there hasn’t been a DPRK exploit—or any exploit, for that matter—of Hyperliquid. Every user’s money is tracked down.
The platform emphasized its strong security architecture. This involves following blockchain analytics best practices and implementing a bug bounty program.
Allegations of unprofessional encounters with a security advisor were also addressed by Hyperliquid Labs. They said that because of the advisor’s actions, the team decided to speak with reliable partners instead.
Hyperliquid’s native coin, HYPE, was instantly damaged by the accusations and the ensuing market turbulence.
In spite of the criticism, Hyperliquid is still becoming more popular. More than 55% of the on-chain perpetual futures trading volume is handled by the platform.
North Korean hackers double the amount of cryptocurrency stolen in 2023 by stealing over $1.3 billion
Between 2023 and 2024, North Korean hackers doubled their cryptocurrency thefts, stealing more than $1.3 billion, according to Chainalysis.
According to the company’s report released on December 19, these hackers were in charge of 47 occurrences, or 61% of all 2024 cryptocurrency thefts.
The size of individual heists has increased, according to chainalysis. In 2024, attacks costing between $50 and $100 million and those costing more than $100 million were more frequent.
Some of the biggest breaches in the cryptocurrency business have been connected to North Korean hackers. Organizations engaged in the nation’s money laundering activities are often sanctioned by U.S. authorities.
The third and fourth quarters of 2024 saw a decrease in global cryptocurrency hacking activity, but an increase in DPRK-related hacks.
According to Chainalysis, North Korea’s stronger relations with Russia may make them less dependent on cybercrime. It did, however, warn of possible alterations by year’s end, pointing out that hackers frequently target holidays.
Although Chainalysis said the exact relationship is yet unknown, the date of the decline in activity after July 1 corresponded with Russian President Putin’s visit to Pyongyang.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
