North Korean Cyber Threats Trigger $249 Million Outflow from Hyperliquid

On December 23, the TVL of the Hyperliquid platform decreased by $249 million to $2.08 billion, according to Dune Analytics. This followed activity by North Korean hackers on the platform and speculation about a potential breach.

The community speculated that the perpetrators might gain control over most validators, similar to the Axie Infinity hack.

MetaMask wallet developer Tai Vano commented on the situation. According to her calculations, the total losses due to North Korean hackers exceeded $700,000.

Later, the project team refuted these claims and assured that all user funds are safe.

Hyperliquid Labs: We are aware of reports circulating regarding activity by supposed DPRK addresses. There has been no DPRK exploit — or any exploit for that matter — of Hyperliquid. All user funds are accounted for. Hyperliquid Labs takes opsec seriously. No vulnerabilities have… https://t.co/VI46V2O00g

— Wu Blockchain (@WuBlockchain) December 23, 2024

“There has been no hack of Hyperliquid by [associated with] DPRK [addresses],” the statement said.

The developers’ response helped the HYPE token partially recover its losses. At the time of writing, the asset is trading at $29.69. At its peak, the price exceeded $35.5. Over the past day, the token increased by 5.8%.

Hyperliquid launched HYPE at the end of November, and within five days, the asset tripled in value. As of mid-December, the influx of USDC to the exchange following the airdrop reached $1 billion.

According to Chainalysis, in 2024, North Korean hackers stole crypto assets worth $1.34 billion — 61% of the total figure.

According to the UN, about half of North Korea’s foreign currency income is derived from cyberattacks.