The cryptocurrency trading platform Hyperliquid experienced its largest daily outflow in history. Traders are withdrawing their assets due to concerns that North Korean hackers are conducting activities on the exchange, according to Bloomberg.
Digital wallets associated with hackers have been trading on Hyperliquid since October 2024, as reported by Taylor Monahan, a security expert working with the MetaMask digital wallet provider. Monahan stated that trading is often used by North Korean hackers to test potential security vulnerabilities on platforms like Hyperliquid.
Taylor Monahan's posts sparked lively discussions on social media, with some supporters of Hyperliquid accusing her of creating unnecessary panic.
According to the venture fund Hashed on Dune Analytics, on Monday, December 23, over $112 million worth of USDC stablecoins were withdrawn from the exchange. The value of HYPE, the exchange's token, dropped by 20%, according to data from CoinGecko.
Hyperliquid is a cryptocurrency exchange that combines the advantages of both centralized platforms like Binance and decentralized ones like Uniswap. It offers the transparency associated with decentralized exchanges through its own blockchain. However, to ensure high speed similar to centralized exchanges, it sacrifices some decentralization benefits as the blockchain ledger software is maintained by a closed group of developers.
Hyperliquid has rapidly become the largest cryptocurrency exchange by trading volume in the decentralized finance space, with an average daily trading volume of $8.8 billion per week. Recently, the platform set a new 24-hour trading volume record exceeding $15 billion.