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Hyperliquid Refutes $700K DPRK Exploit, HYPE Token Rebounds
In a recent development, Hyperliquid Labs has refuted claims of any security vulnerabilities or DPRK-linked exploits on its platform. The denial comes after reports surfaced suggesting that wallets linked to North Korean hackers were trading on the protocol, resulting in alleged losses exceeding $700,000.
The allegations, initially shared by Taylor Monahan, a security expert from MetaMask, claimed that these activities were not ordinary trades but rather tests for potential vulnerabilities. According to the report, a North Korean-linked address deposited over $476,489 into Hyperliquid and went long on Ethereum at $3,791.8, only to be liquidated when the price fell below the initial investment, resulting in a loss of approximately $458K.
The news sparked fear within the crypto community, prompting users to withdraw their funds from the protocol. According to Hashed’s Dune Analytics, over $194 million in USDC was withdrawn on Monday alone. Additionally, Hyperliquid’s native token, HYPE, plummeted by more than 25%, dropping from $34 to $25.
In response to these allegations, Hyperliquid Labs addressed the claims, stating that no exploit or security breach occurred on the protocol. The company emphasized its commitment to security and operational security (opsec), assuring users that all funds are accounted for and there were no vulnerabilities exploited.
Following this clarification from the protocol, HYPE’s price began to recover, rebounding from a low of $25 to $27.
This incident serves as a stark reminder of the ever-present threat of cyber attacks in the crypto space.
Source: www.cryptonewsz.com
