Hyperliquid Labs, the team behind HYPE's $28 billion FDV token, has refuted claims that North Korean hackers have infiltrated its Layer 1 protocol.

Hyperfluidics laboratories (The noise) Share an ad exposing any links between whale activity and potential exploits orchestrated by hackers from the Democratic People's Republic of Korea. For every message published On the project's Discord server, "no vulnerabilities were shared by any party," and white hats are welcome to submit bug reports as part of a "generous bug bounty program."

On December 23, the HYPE whale sold 1 million tokens amid speculation that North Korean hackers were actively trading on the layer-one blockchain. Veteran security experts, such as MetaMask developer Taylor Manohan, have stated that the hackers, who are likely part of the notorious Lazarus group, may have instigated the vulnerability.

The trade profession in the DPRK is…ah….going…..🙈

Well, if I were the guy running Hyperliquid's four validators (or those damned diodes in the ghetto on gh) I'd be pooping my pants right now.

Men with overhydration don't seem to be concerned at all although I'm sure that's fine. 🫠 pic.twitter.com/JrrU7t1sJe

- Tay 💖 (@tayvano_) December 22, 2024

Data showed that DPRK-branded wallets executed on-chain swaps and lost about $700,000. "Yale, the DPRK doesn't do trade. DPRK tests," Taifano, as Manohan is known online, asserted as community members searched for answers.

We are aware of reports circulating regarding the activity of supposed DPRK addresses. There has been no exploitation by the DPRK - or any exploitation for that matter - of Hyperliquid. All user funds are accounted for. Hyperliquid Labs takes the Opsec process very seriously.

Hyperliquid Labs via Discord

Fluid overload disaster

The issue became heated on social media, with HYPE owners attacking Manohan for spreading FUD — an acronym for “Fear, Uncertainty, and Doubt” — around Hyperliquid.

However, industry leaders such as Polygon CISO Mudit Gupta, Coinbase CEO Conor Grogan, and podcast host Laura Shin have rallied around Manohan, emphasizing the merits of her security advice. Gupta in particular. Repeat Manoha's proposal to tighten security by decentralizing its multi-signature permissions and addressing centralized points of failure.

The Hyperliquid Bridge is controlled by two 3 of the 4 hot wallet multiple tokens, managed by a single binary.

I would advise them to increase this threshold and eliminate the single point of failure instead of attacking security researchers.

If they need help, a SEAL will still gladly help.

– Mudit Gupta (@Mudit__Gupta) December 23, 2024

North Korean hackers have Stolen Nearly $2 billion users and crypto protocols this year alone. FBI to caution Lazarus was aggressively targeting digital asset trading venues in September, suspecting that bad actors in the DPRK have embezzled up to $4 billion in cryptocurrencies over the years.

There are no more than 4 validators and they all run the same code, probably compiled as well. The central infrastructure, building systems, etc. are maintained and accessed by an unknown number of founders, upper levels, and engineers who use the same devices to access said systems as they do to talk to...

- Tay 💖 (@tayvano_) December 23, 2024