Hyperliquid Denies Being Hacked by Lazarus Group

Hyperliquid has firmly denied any security breach linked to North Korea's Lazarus Group, despite on-chain evidence suggesting suspicious activity. Blockchain data indicates that wallet addresses tied to Lazarus deposited and withdrew significant amounts of ETH from the platform on December 23. Security expert Taylor Monahan from MetaMask highlighted vulnerabilities in Hyperliquid’s system, stressing the risk of exploitation even without direct interference with user funds.

Rumors of a potential breach have triggered mass withdrawals, with users pulling out $60 million from Hyperliquid amid growing concerns. The platform’s HYPE token also saw a sharp decline in value. In response, a Hyperliquid executive addressed the situation on Discord, firmly denying any security compromise. The executive insisted that no evidence of vulnerabilities had been shared and that all user funds were secure.

Despite these reassurances, on-chain data shows Lazarus-linked accounts transferring around $476,489 in ETH through the platform. While this isn’t definitive proof of an exploit, it raises concerns about the unusual transaction volumes linked to suspicious addresses. Monahan emphasized the seriousness of the threat posed by Lazarus, describing them as “highly sophisticated and persistent attackers.”

The Lazarus Group is widely recognized for its role in major crypto heists, including the Radiant Capital hack earlier this year. They reportedly stole nearly $900 million in 2024 alone. Monahan warned that Hyperliquid’s system might be vulnerable due to operational security oversights. She pointed out that the platform relies on only four validators running identical code and suggested that key personnel may have overlapping access to critical systems, increasing the risk of lateral attacks.

Monahan also expressed concerns about potential malware exposure through shared devices. If even one executive's private device is compromised, it could lead to a catastrophic breach. She criticized Hyperliquid’s dismissive stance, stating that the platform’s defensive response signals a lack of urgency in addressing these risks.

While Hyperliquid denies any breach and claims user funds are secure, the crypto community remains on high alert. Experts agree that even if Lazarus hasn’t accessed user assets, their increased interest in the platform signals a potential future threat. For now, the exchange continues to reject accusations, but skepticism remains strong as the industry closely watches for further developments.