In the last 24 hours, a crypto whale deposited 18.3 million USDC into Hyperliquid, reportedly intending to purchase HYPE, the exchange’s native token. The news comes after Hyperliquid experienced substantial outflows of the stablecoin USDC, with over $100 million leaving the platform on Monday, per data compiled by Hashed on Dune Analytics.
According to data from Lookonchain, the whale has already used 5.81 million USDC to acquire 210,420 $HYPE at an average price of $27.6.
A whale deposited 18.3M $USDC into #Hyperliquid to buy $HYPE in the past 24 hours.
— Lookonchain (@lookonchain) December 24, 2024
So far, the whale has spent 5.81M $USDC to buy 210,420 $HYPE at $27.6.https://t.co/xTBDrYMvbh pic.twitter.com/rabo6elIDm
Massive withdrawals from Hyperliquid, that took place yesterday, followed a series of posts by crypto security expert Taylor Monahan, also known as Tayvano on X, who raised alarms about suspected activity by North Korean hackers tied to the Democratic People’s Republic of Korea (DPRK).
As reported by Cryptopolitan, Tayvano’s claims included references to addresses allegedly linked to the notorious Lazarus Group hackers, who reportedly lost over $700,000 in trading on the Hyperliquid platform. These revelations generated widespread FUD within the Hyperliquid community, triggering the sharp movement of funds.
According to CoinGecko, the price of Hyperliquid’s native token dropped 20%, from $34 on Sunday to $25 by Monday.
Hyperliquid labs denies exploit claims
On December 23, speculation about North Korean hackers prompted a HYPE whale to sell 1 million tokens. Security sleuth Taylor Monahan suggested that the Lazarus Group may have been testing the platform for vulnerabilities, further fueling the controversy.
In a post on X, Monahan shared the “suspicious” addresses of the alleged DPRK hackers. The posts sparked a broad debate on social media, with some Hyperliquid supporters criticizing her for creating unnecessary panic.
In response to the growing controversy, Hyperliquid Labs issued statements on its Discord channel, rejecting allegations of a DPRK exploit. “Hyperliquid Labs is aware of reports circulating regarding activity by supposed DPRK addresses,” the team stated. “There has been no DPRK exploit – or any exploit for that matter – of Hyperliquid. All user funds are accounted for.”
The team highlighted the platform’s strong security measures, including adherence to best practices in blockchain analytics and a comprehensive bug bounty program. Hyperliquid Labs also addressed reports of unprofessional conduct involving an external security advisor, explaining that the individual’s behavior prompted them to consult trusted partners instead.
After Hyperliquid Labs’ clarifications, the market showed signs of stabilization. Despite the initial sell-off, $HYPE has since rebounded and is currently trading at $27, according to recent updates from DexScreener.
Hyperliquid remains a dominant force in the decentralized finance ecosystem. According to data from a Dune Analytics dashboard, Hyperliquid accounts for over 55% of on-chain perpetual futures trading volume. The platform achieved a daily trading average of $8.8 billion in the past week and recently recorded a 24-hour trading volume exceeding $15 billion on Dec. 21.
Crypto hacks and fraud incidents continue
The security concerns surrounding the crypto entity come amidst a broader context of industry-wide vulnerabilities. In 2024, the crypto sector experienced losses totaling $1.49 billion due to hacks and fraud, according to research by blockchain security startup Immunefi.
While this marked a 17% decrease from 2023, hacks remained the predominant cause, accounting for $1.47 billion, or 98.1%, of the total losses across 192 incidents.
Fraud, including rug pulls and scams, represented 1.9% of the losses at $28 million, though this category saw a 72% increase year-on-year.
The second quarter of 2024 was particularly damaging, with losses reaching $572.6 million, driven by major incidents at DMM Bitcoin and BtcTurk. By contrast, the fourth quarter recorded the least losses at $150.5 million, which could mean investors were taking cautious steps in making transactions as the year comes to a close.
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