Hyperliquid’s TVL Plummets by Over $1 Billion
- Hyperliquid, a layer-1 decentralized leveraged trading platform, experienced a significant drop in its total value locked (TVL) by over $1 billion in the past week.
- This decrease in TVL is attributed to suspicious activity linked to North Korean hackers.
- As a result, Hyperliquid’s native token value saw a steep 20% decline in the last 24 hours.
Record Outflow
Data from DeFiLlama revealed that Hyperliquid’s TVL plummeted by 35% in the past week, reaching $2.25 billion from the previous $3.45 billion on Dec. 17.
On Dec. 23, Tom Wan, Head of Data at Entropy Advisor, highlighted a substantial withdrawal of $70 million USDC in a single day, representing 3% of the platform’s bridged TVL.
Despite the significant outflow, Wan emphasized the stability of inflows and outflows and underscored their importance in assessing user confidence.
He also mentioned that the outflows were linked to security concerns stemming from the suspicious North Korean activity.
North Korea Links
Web3 security expert Talor Monahan identified a surge in transactions from North Korea-linked addresses on Dec. 23, raising concerns about a potential targeted attack.
It was revealed that North Korean hackers had been testing Hyperliquid’s platform through a series of transactions, resulting in losses of around $701,000.
Market observers fear that this activity indicates preparations for a more significant and damaging operation by the North Korean hackers.
Recent reports from Chainalysis showed a significant increase in North Korean hackers’ activities, with $1.34 billion stolen across 47 attacks in 2024, compared to $660 million in 2023.
