CandleFocus

North Korean hack concerns spark $114M FUD on the Hyperliquid bridge

Author: Content Editor
Millions of USDC has been moved from Hyperliquid, a decentralized exchange, following concerns raised by crypto security expert Tayvano about hackers linked to the Democratic People’s Republic of Korea (DPRK) on the platform. Tayvano revealed that DPRK hackers had lost over $700,000 in trading on Hyperliquid and suggested that this was a deliberate test. This news has caused fear, uncertainty, and doubt (FUD) in the Hyperliquid community, resulting in the movement of over $114 million in USDC from the platform. Hyperliquid has not yet commented on the situation, but its token has dropped by over 20%, and major whales are liquidating assets. The potential vulnerabilities on Hyperliquid, highlighted by Tayvano, poses a significant risk, as the loss of $2.2 billion in USDC could occur if three out of four validators are compromised. Blockchain bridges, such as Hyperliquid, have a history of being vulnerable to hacks, accounting for over 31% of funds lost to hacks. However, there are opposing views on Tayvano's concerns, with some professionals urging the Hyperliquid team to address the issues and others accusing Tayvano of spreading FUD. The impact of Tayvano's post has led to a loss of over $2 billion in Hyperliquid's market cap. The involvement of DPRK government-sponsored hackers in crypto hacks has raised concerns, as they are responsible for the majority of crypto thefts, raking in over $1.34 billion this year. The campaign to crack down on these hackers has led to increased sophistication in their operations.

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