Hyperliquid Faces Record Net Outflows Amid Hacker Concerns

Decentralized perpetual trading platform Hyperliquid experienced unprecedented net outflows following claims on the social media platform X that North Korea-backed hackers were using the platform.

Data from Dune Analytics shows that Hyperliquid recorded USDC net outflows of $249.1 million on Monday and an additional $22.2 million on Tuesday.

Taylor Monahan, a security researcher from Metamask, posted 12 blockchain addresses linked to North Korean cyberactors that she identified as being active on Hyperliquid since October 2. Monahan expressed concerns about the platform’s security, suggesting that DPRK actors might be familiarizing themselves with the platform to plan future attacks.

In her offer to assist Hyperliquid, Monahan tweeted, “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 highlighted the sophistication of North Korean threat groups.

Hyperliquid’s native token, Hype, also showed volatility, dropping from a weekend high of $34.5 to approximately $26 on Monday, but regaining 5.4% over 24 hours, trading at $29.63.

In response to the allegations, Hyperliquid stated on Discord that they had detected no evidence of an exploit, asserting, “There has been no DPRK exploit — or any exploit for that matter — of Hyperliquid. All user funds are accounted for.”

DPRK state-backed hacker groups have been implicated in significant crypto thefts, including the $600 million hack of the Ronin Ethereum sidechain in 2022.