North Korean hack fears sent Hyperliquids HYPE token on a rollercoaster
Hyperliquid, a Layer 1 blockchain, and decentralized exchange, faced sharp declines in token value and total value locked (TVL) over the weekend after reports surfaced of potential involvement by North Korean hackers.
Security expert Taylor Monahan flagged suspicious wallet activity linked to the Democratic Peoples Republic of Korea (DPRK) on Dec. 22, triggering a 20% drop in the HYPE token price and TVL.
Monahan, who collaborates with MetaMask, revealed that DPRK-associated addresses had been liquidated for $458,000 on Hyperliquid.
In her posts, Monahan warned that the DPRKs activity suggested reconnaissance rather than trading, writing that DPRK doesnt trade. DPRK tests, hinting at a potential future attack.
Hyperliquids TVL fell to $2.05 billion, down from $2.56 billion, while the HYPE token dropped from $34 to $27 before making a partial recovery.
The Hyperliquid Labs team denied any breach in an official statement on Discord, saying:
There has been no DPRK exploit or any exploit for that matter of Hyperliquid.
The team added that a security researcher had contacted them but cited unprofessional conduct as the reason for dismissing their assistance, opting instead to consult with trusted third parties.
Cygaar, a developer and contributor to the Abstract chain, reassured the community that measures such as freezing USDC or rolling back the chain could be implemented in the event of an exploit.
He added:
I wouldnt be full-on panicking over this right now there are guard rails in place should the worst possible outcome happen.
The incident highlights ongoing risks of cyberattacks in the DeFi sector, where DPRK-affiliated hackers have increasingly targeted vulnerabilities to fund state operations.
As of press time, Hyperliquids HYPE token had mostly recovered from the past days slide and was trading around $313 after climbing 15%.1
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