On December 23, the total value locked (TVL) on the Hyperliquid platform decreased by $249 million to $2.08 billion, according to Dune Analytics. This drop followed activity from North Korean hackers on the platform and speculations about a possible breach.

The community speculated that attackers could gain control over the majority of validators, similar to the Axie Infinity hack.

Tai Vano, a developer of the MetaMask wallet, also commented on the situation. According to her calculations, the total losses attributed to North Korean hackers have exceeded $700,000.

Later, the Hyperliquid team denied these allegations and assured users that their funds were safe.

Hyperliquid Labs: We are aware of reports circulating regarding activity by supposed DPRK addresses. There has been no DPRK exploit – or any exploit for that matter – of Hyperliquid. All user funds are accounted for. Hyperliquid Labs takes opsec seriously. No vulnerabilities have… https://t.co/VI46V2O00g
— Wu Blockchain (@WuBlockchain) December 23, 2024

“No hacking of Hyperliquid by [North Korea-linked] addresses,” the project’s statement read.

The developers’ response helped HYPE partially recover its losses. At the time of writing, the token is trading at $29.69. It peaked at over $35.5, and over the past 24 hours, the token has gained 5.8%.

Hyperliquid launched the HYPE token in late November, and its value tripled within five days. By mid-December, USDC inflows to the exchange after the airdrop reached $1 billion.

According to Chainalysis, North Korean hackers stole $1.34 billion in crypto assets in 2024, accounting for 61% of global crypto thefts.

Reminder: The United Nations reported that approximately half of North Korea’s foreign currency revenues are derived from cyberattacks.