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Hyperliquid, a decentralized derivatives exchange, is facing scrutiny after experiencing significant outflows of over $112 million in USDC. Concerns have been raised regarding a potential security breach and the possible involvement of the North Korean hacking group Lazarus. Security experts have highlighted vulnerabilities within Hyperliquid's framework and warned of the group's potential targeting of the platform. This situation led to a sharp decline of over 20% in the price of Hyperliquid's native token. Hyperliquid has denied any compromise, but suspicious transaction activity is under investigation.

Cybersecurity specialists have expressed concerns over Hyperliquid's security framework, citing the platform's concentrated validator model as a potential risk, where only four validators run the same code. The ongoing scrutiny of Hyperliquid comes amidst substantial on-chain evidence indicating large funds withdrawals from its platform, allegedly linked to Lazarus Group wallets. Despite Hyperliquid's denial of a hack, the community remains apprehensive about potential security exploitations and the possibility of the Lazarus Group orchestrating further malicious activities given their history of targeting crypto platforms.

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References:

• Techmeme - Muyao Shen / :   —  - Hyperliquid is the largest DeFi derivatives exchange by volume  — Security expert says Hyperliquid faces threat from North Korea - 7d
• Coinpedia Fintech News - Hyperliquid Faces $60 Million USDC Outflow Amid North Korean Hacking Rumors, Denies Any Exploit - 7d
• COINOTAG NEWS - Concerns Rise Over Hyperliquid’s Security Amid Lazarus Group Activity and Expert Warnings - 7d
• www.bloomberg.com - Muyao Shen / :   —  - Hyperliquid is the largest DeFi derivatives exchange by volume  — Security expert says Hyperliquid faces threat from North Korea - 7d

Classification:

• HashTags: Hyperliquid LazarusGroup CryptoSecurity
• Company: Hyperliquid
• Target: Hyperliquid
• Attacker: Lazarus Group
• Product: DeFi derivatives exchange
• Feature: exchange security
• Type: Hack
• Severity: Major