Hyperliquid Refutes $700K DPRK Exploit, HYPE Rebounds

After the reports of exploitation went viral, Hyperliquid Labs, a prominent on-chain perpetual futures exchange, came forward to deny claims of any security vulnerabilities or DPRK-linked exploits. 

Earlier, the reports suggested that wallets linked to North Korean hackers were trading on its platform. The allegation surfaced through analyses shared by Taylor Monahan, a security expert from MetaMask, who noted over $700,000 in trading losses tied to these wallets. 

He affirmed that these activities were not mere trades but tests for potential vulnerabilities, stating, “DPRK doesn’t trade. DPRK tests.”

North Korean hackers went long $ETH on #Hyperliquid, turning $476,489 into $18,187 — a loss of $458K in just 2 days!

As reported by @tayvano_, a North Korean-linked address deposited 476,489 $USDC into #Hyperliquid, went long on $ETH at $3,791.8, and was liquidated when the… pic.twitter.com/rXhHzD3AEW

— Lookonchain (@lookonchain) December 23, 2024

The allegation sparked fear in the crypto community, forcing users to withdraw their funds from the protocol. According to Hashed’s Dune Analytics, over $194 million in USDC was withdrawn on Monday alone. Additionally, the protocol’s native token, HYPE’s price plunged by over 25%, dropping from $34 to $25.

Hyperliquid’s Official Response

In response, Hyperliquid Labs addressed the allegations, claiming that no exploit or security breach occurred on the protocol.

Hyperliquid Labs: We are aware of reports circulating regarding activity by supposed DPRK addresses. There has been no DPRK exploit – or any exploit for that matter – of Hyperliquid. All user funds are accounted for. Hyperliquid Labs takes opsec seriously. No vulnerabilities have… https://t.co/VI46V2O00g

— Wu Blockchain (@WuBlockchain) December 23, 2024

After the clarifications from the protocol, the HYPE token started to recover, recovering from a low of $25 to $27. 

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