Hyperliquid experienced significant net outflows, totaling approximately $250 million, following allegations regarding North Korean hackers being active on its platform.
Hyperliquid experienced significant net outflows, totaling approximately $250 million, following allegations regarding North Korean hackers being active on its platform.
On Monday, Taylor Monahan, a security researcher from MetaMask, shared on social media platform X that she identified several blockchain addresses operating on Hyperliquid linked to North Korea's cyber activities.
Data from Dune Analytics indicated that the platform saw USDC net outflows of $249.1 million on Monday, with an additional $22.2 million recorded on Tuesday.
Monahan's post included details of blockchain addresses that had been active since Oct. 2, raising concerns about potential threats to the platform's security.
Monahan reiterated her offer to assist Hyperliquid in bolstering its defenses against these sophisticated threat actors, emphasizing the risks posed by North Korean groups known for their advanced hacking capabilities.
“I am quite concerned that you guys are at increased risk due to the fact we know that these specific threat actors are now intimately familiar with your platform,” she stated in a screenshot of a message she says she had written to the Hyperliquid team two weeks prior.
In response to the claims, Hyperliquid assured users that all funds were accounted for and stated that no exploit or vulnerability had been detected. The platform emphasized, “There has been no DPRK exploit—or any exploit for that matter—of Hyperliquid.”
The platform's native token, Hype, also experienced volatility, dropping from a peak of $34.5 over the weekend to around $26 on Monday before recovering slightly to $29.63 by the time of reporting.
North Korea's state-sponsored hacking groups have been implicated in some of the largest cryptocurrency thefts, including the $600 million hack of the Ronin Ethereum sidechain in 2022. Hyperliquid's situation highlights ongoing concerns about security in the decentralized finance sector.
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