Is Hyperliquid Labs Funds Really Safe from North Korea Hack?

Hyperliquid Labs Denies North Korea Hack Rumors: Your Funds Are Safe

Hyperliquid Labs Shuts Down Exploit Rumors, Ensures Fund Security Amid Market Panic

Hyperliquid Labs, a decentralized perpetual futures trading platform, has strongly rejected claims that it was exploited by North Korean hackers. The platform reassured its users that all funds remain secure, despite growing concerns over suspicious trading activities tied to wallets allegedly linked to the DPRK (Democratic People's Republic of Korea).

The Allegations That Triggered Market Fears

The controversy began when Taylor Monahan, a renowned security expert, pointed out that wallets connected to North Korean hackers appeared to be trading on Hyperliquid. These wallets, reportedly engaging in Ethereum (ETH) transactions, were linked to liquidations exceeding around $700,000.

Monahan suggested that this could be a probe into Hyperliquid’s defenses, igniting fears across the community. The result? A surge in withdrawals, particularly USDC, with over $194 million pulled from the platform in a single day, according to Hashed's Dune Analytics dashboard.

Hyperliquid Labs Responds: No Exploit Detected

In response to the growing alarm, Hyperliquid Labs issued a statement on its Discord channel, emphasizing that there was no hack or exploit. "To the best of the authors' knowledge, there has been no DPRK exploit – or any exploit for that matter – of Hyperliquid. All customer funds are accounted for," the team assured.

The company also highlighted its rigorous operational security practices, including a robust bug bounty program and adherence to industry standards in blockchain analysis. No vulnerabilities have been reported by third-party researchers, according to Hyperliquid.

HYPE Token Recovers After Sharp Drop

As the rumors spread, the price of Hyperliquid’s native token, HYPE, took a hit, dropping around by 15% from $34.90 on Sunday to $29.40 at the time of writing. However, after Hyperliquid’s reassuring statements about fund security, the Hyperliquid $HYPE price began to stabilize, currently trading at approximately $29.91, with an 9.05% increase from the past 24 hours. At the time of writing, $HYPE market cap is standing at $7.98B.

Despite the temporary dip, Hyperliquid’s market dominance remains strong, holding around  55% of the on-chain perpetual futures market. The platform has successfully regained investor confidence, solidifying its position in the DeFi space.

Despite the challenges, Hyperliquid’s commitment to security and transparency remains a key factor in maintaining its trusted status among users.