- December 24, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post Hyperliquid Faces $250 Million in Net Outflows Amid Lazarus Group Hacking Concerns appeared first on Coinpedia Fintech News
Risks are rising regarding the stability of the Hyperliquid platform as some experts predict that it has been hacked by the North Korean Lazarus Group.
Hyperliquid’s Troubled Waters
Now the latest twist, Layer-1 DeFi platform, Hyperliquid, has had consecutive net outflows of over $250 million within 30 hours only.
The issue was uncovered by Taylor Monahan on X, formerly Twitter, on Dec. 23. He said that besides legitimate uses, Hyperliquid was being used by hackers associated with DPRK like the Lazarus Group for criminal activities. “DPRK doesn’t trade. This situation,” Monahan continued gruffly, “DPRK tests.”
New Record High in Redemptions and Platform Action
On Dec 23rd Hyperliquid recorded a withdrawal of $502.71 million and the deposits recorded a figure of $253.5 million. Net withdrawals of $256 million have raised concerns among users even if the platform has dismissed the action.
“As far as known, there has been no DPRK exploit or any exploit for that matter of Hyperliquid. There’s no loss of users’ funds,” Hyperliquid responded to rumours labelled as fake on its Discord channel.
Lazarus Group: The Evolution of Threat
The notorious cybercrime group from North Korea, the Lazarus Group has hacked numerous cryptocurrency platforms to steal $1.33 billion in several crypto currencies in 2024 alone doubling its cryptocurrency theft from the previous year.
That being said, their possible increasing interest in Hyperliquid has caused alarm bells to ring throughout the crypto space.
Monahan noted that hyperliquid employs only four validators and some of the infrastructure can be considered centralized, thus a perfect target for an advanced hacker.
- Also Read :
- Crypto Hack Weekly Report: $2.2 Billion Stolen in 2024, Centralized Exchanges Hit Hard
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The Ripple Effect on Hyperliquid
The controversy has influenced Hyperliquid’s native token through its drastic fall, which declined by about 20% from its leading price of $35 to $29. The platform’s critics say the company’s attitude toward the security problems only worsens it.
Although Hyperliquid continues to deny its knowledge of any exploit, data available on the blockchain reveals substantial interaction connected with the profiles allegedly associated with North Korea. This is due to inadequate enhanced security infrastructure, a matter security specialists are advising people against as the frequency of cybercrime continues to grow rapidly.
Currently, the crypto community waits to see how Hyperliquid handles this period of volatility, with many wondering if the site is secure enough against increasing attacks from state-employed hackers.
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