Hyperliquid, a prominent decentralized perpetual exchange (DEX), has become a center of attention due to a potential hacking incident awaiting it to happen on its platform. Today, Lookonchain flagged numerous North Korean hacker addresses trading on Hyperliquid, raising safety concerns about users’ data and funds.
Hyperliquid (HYPE) obtained instant popularity in the market after its launch. It recently reached a market cap of $11.5 billion, making it number 19 in the entire crypto ecosystem. Its massive success is based on its unique approach. The enormous rise in its trading volume is because of its recent massive airdrop. Hyperliquid distributed 310 million HYPE tokens to its community last month, making it the largest crypto airdrop in history.
Hacking fears on Hyperliquid
Despite Hyperliquid’s popularity among crypto users, its platform is under scrutiny following suspicious trading activities associated with North Korean hackers. Lookonchain spotted an increase in transactions from suspicious addresses, giving a warning about a possible vulnerability and a bigger hacking scheme underway.
Over the past week, these addresses have together lost over $458,000 following their trading activities on the platform. Experts feel that such losses are part of a diversionary tactic employed by the hackers as they engage in a bigger scheme of testing Hyperliquid’s system vulnerability.
As per Lookonchain’s findings, crypto analyst Tayvano contacted the Hyperliquid team about the imminent vulnerability and provided knowledge and support to help combat the alleged threat.
On his X account, Tayvano discussed the risks brought about by the presence of North Korean hackers on the Hyperliquid platform. He suggested a clear communication approach between the Hyperliquid team and security professionals to share information and corrective solutions to efficiently safeguard the trading platform from becoming a notable target.
HYPE prices are down
Hyperliquid prices continue to struggle in a chaotic week caused by North Korean hackers trading on the platform. The price of HYPE was about $27.45 at the time of writing, down 18.7% in the last 24 hours.
Today, the digital asset market was thwarted by the news about security issues on Hyperliquid. The hacking rumors raged on when Tayvano disclosed that Hyperliquid only depends on four validators for its security protection and safeguard.
The crypto analyst went further and said if cyber criminals were to breach three of the four validators, they could access billions of funds kept in the platform’s bridge.
North Korean cyber criminals embezzle $1.34 billion in crypto
Hacking remains a big concern. So far, a total of $2.2 billion in crypto assets have been embezzled this year, with North Korean hackers responsible for over half of that amount. According to the latest Chainalysis report, some of the frauds seem to be connected to North Korean hackers presenting themselves as remote IT workers to penetrate cryptocurrency and other technology companies.
The amount of crypto funds embezzled by hackers this year rose by 21% from the previous year. However, they are still below the gravity reached in 2021 and 2022. Some of the most horrific cases this year involved the embezzlement of $300 million from digital asset exchange DMM Bitcoin. And the theft of $235 million from cryptocurrency exchange WazirX. The North Korean regime engages in crypto theft and other types of cybercrime to raise finances and dodge international sanctions.
