After reports of possible involvement from North Korean hackers, Hyperliquid, which is a Layer 1 Blockchain and centralized exchange, saw its token value drop and the total value locked fall sharply over the weekend.
Security expert Taylor Monahan flagged suspicious wallet activity linked to the Democratic People’s Republic of Korea (DPRK) on Dec. 22, triggering a 20% drop in the HYPE token price and TVL.
Monahan Monahan is a MetaMask collaborator. She revealed on Hyperliquid that DPRK associated addresses have been sold for $458,000.
In her posts, Monahan warned that the DPRK’s activity suggested reconnaissance rather than trading, writing that “DPRK doesn’t trade. DPRK tests,”It is a hint at an imminent attack.
Hyperliquid’s 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.
Hyperliquid Labs denied that any violation occurred in an official Discord statement.
“There has been no DPRK exploit — or any exploit for that matter — of Hyperliquid.”
A security researcher contacted the team, but they cited “unprofessional conduct”If you don’t want their help, consult trusted third parties instead.
Cygaar is a developer who contributed to the Abstract blockchain. He reassured that in case of an exploit, measures like freezing USDC and rolling back the Chain could be taken.
Then he added:
“I wouldn’t be full-on panicking over this right now — there are guard rails in place should the worst possible outcome happen.”
Cyberattacks on the DeFi sector continue to be a threat, as hackers affiliated with DPRK have targeted more vulnerabilities in order to finance state operations.
As of press time, Hyperliquid’s HYPE token had mostly recovered from the past day’s slide and was trading around $313 after climbing 15%.1
Postings in: DeFi The Author 
Assad Jafri
AJ is a dedicated journalist who has spent over a decaene honing his craft. He was first inspired by the Arab Spring in Yemen, 2011. He specializes in financial reporting and now concentrates on cryptocurrency.
Email: @Saajthebard Editor
News Desk
CryptoSlate offers a comprehensive source of crypto-related news, insight, and statistics. Focusing on Bitcoins, macro, DEFI and AI.
Twitter Email Editor @cryptoslate Ad 
Wilder World unveils revolutionary gameplay trailer
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
