Hyperliquid has denied claims of a security breach linked to North Korea’s Lazarus Group, even though there is blockchain evidence showing unusual activity on its platform.
On December 23, wallet addresses tied to Lazarus reportedly made large deposits and withdrawals of Ethereum (ETH), raising concerns among security experts. Taylor Monahan, a security expert from MetaMask, highlighted weaknesses in Hyperliquid’s system that could be taken advantage of without needing to access user funds directly.
Due to these issues, users started withdrawing money, taking out about $60 million from Hyperliquid, which caused a significant drop in the value of its HYPE token. An executive from Hyperliquid spoke on Discord, saying there was no proof of a security breach and that user funds were safe.
On-chain data showed that accounts linked to Lazarus moved about $476,489 in ETH using Hyperliquid, which raised concerns about the unusual transaction amounts.
Monahan highlighted the skill of the Lazarus Group, recognized for major crypto thefts, including a recent hack that gained almost $900 million in 2024. She raised worries about Hyperliquid’s security, pointing out that the platform depends on just four validators using the same code, which might create weaknesses. She also pointed out the risks of malware if an executive’s device gets compromised, which could lead to a serious breach.
Hyperliquid insists there has been no breach, but the crypto community is staying alert. Experts say that even if Lazarus hasn’t accessed user assets yet, their increasing interest in the platform could be a future risk. As things progress, doubts remain in the industry, with many watching Hyperliquid for updates.
