Hyperliquid (HYPE), a decentralized perpetual exchange (DEX) operating on its own Layer 1 blockchain, is currently grappling with significant security concerns after observing abnormal trading activities linked to North Korean hacker groups. Several addresses marked as North Korean hacker have been trading on Hyperliquid, with a total loss of more than $700,000, as first highlighted by @tayvano_, a crypto threat tracker known for his expertise in identifying risks related to North Korean cyber activities.

According to @tayvano_, the nature of these transactions suggests that they may be tests of Hyperliquid’s security systems rather than mere financial activity. He expressed his concerns through a post on X. “DPRK’s trading career is…uh….going….. tbh if I was the dude managing Hyperliquid’s 4 validators (or those fucking ghetto ass binaries on gh) I would be shitting my pants right now. Hyperliquid dudes don’t seem worried at all though so I’m sure its fine. […] DPRK doesn’t trade. DPRK tests,” he explained.

Further underscoring the urgency of the situation, @tayvano_ followed up with a strong statement about the necessity for immediate action by Hyperliquid to enhance its defenses. “My offer from 2 weeks ago still stands Hyperliquid. I’m still happy to do it async or via a call. I can even give you one of my super nice happy colleagues if you don’t like me. But a massive amount of harm will come to people if you don’t harden your ass asap,” he warned.

Hyperliquid Faces Some Serious Risks

Prithvir Jhaveri, founder and CEO of Loch, a personalized crypto portfolio analytics and intelligence platform, provided an assessment of the challenges which Hyperliquid is facing via X. Jhaveri detailed the operational security risks, highlighting the exposure due to the platform’s reliance on a minimal number of validators.

“Wallet addresses well-known to be from the North Korean hacker group Lazarus have been testing Hyperliquid. Typically, these addresses perform tests with live funds before coordinating a hack. Their preferred method of approach is phishing. HL has

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Author: Jake Simmons