Hyperliquid Sees Record Net Outflows Amid DPRK Hacker Allegations

Decentralized perpetual trading platform Hyperliquid experienced significant net outflows after claims surfaced on social media that North Korea-backed hackers were present on the DeFi platform.

Net Outflows

According to data from Dune Analytics, Hyperliquid recorded net outflows of USDC worth $249.1 million on Monday and an additional $22.2 million on Tuesday.

Allegations by Experts

Taylor Monahan, a security researcher at Metamask, publicly shared 12 blockchain addresses active on Hyperliquid that she identified as linked to cyberactors associated with the Democratic People’s Republic of Korea (DPRK). One address had activity dating back to October 2.

Monahan expressed concern on social media about the platform's vulnerability, stating, "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 reiterated her offer to assist Hyperliquid in protecting against potential attacks from DPRK actors, whom she described as the most sophisticated and rapidly evolving threat groups.

Token Volatility

Hyperliquid's native token, Hype, also faced volatility, dropping from a weekend high of $34.5 to approximately $26 on Monday, before recovering slightly to $29.63.

Hyperliquid's Response

In response to the allegations, Hyperliquid stated on Discord that no signs of an exploit had been detected. They assured users that "There has been no DPRK exploit — or any exploit for that matter — of Hyperliquid. All user funds are accounted for… No vulnerabilities have been shared by any party."

Historical Context

DPRK-backed hacker groups have a notorious reputation, having been linked to major crypto hacks, including the $600 million theft from the Ronin Ethereum sidechain in 2022.