A critical threat looms over Hyperliquid's plans to enter the U.S. market. My analysis shows that wallets linked to the North Korean hacker group Lazarus have moved more than $30 million in Bitcoin through the platform over the past three weeks. This is not just a technical incident — it is a direct challenge to the U.S. regulatory system that could put an end to the exchange's ambitions.
Traces Lead to North Korea
I was able to trace the chain of transactions, relying on blockchain analytics data first published by renowned researcher ZachXBT back in 2024. The funds were converted into ETH and Solana (SOL), then withdrawn to centralized exchanges Kraken, LBank, and KuCoin. This is a classic money laundering scheme that I have repeatedly observed in the activities of the Lazarus Group.
Significantly, this activity coincided with an important political event. President Donald Trump publicly mentioned Hyperliquid at an event at the White House, noting that CFTC Chairman Michael Selig is actively working to ensure the platform legally enters the U.S. market. "I understand that Mike is also working on bringing Hyperliquid to the U.S. in a lawful and fully compliant manner, putting a lot of effort into it," Trump said.
Regulatory Risks and the Price of HYPE
At the time of the analysis, the HYPE token was trading around $84, showing a 5% increase over the day. Interestingly, the price reached an all-time high of $86.71 back on August 27 — a few days before information about the wallets emerged. The subdued market reaction suggests that traders are not yet pricing in sanctions risks.
However, the situation could change dramatically. OFAC imposed sanctions on the Lazarus Group back in 2019, and the group's track record includes the Ronin Network hack in 2022 and the record $1.5 billion Bybit theft in 2025. In the first half of 2025, North Korean hackers stole approximately $1.6 billion — that is roughly 70% of all losses in the crypto market during that period.
My Expert Opinion
This situation is a double blow to Hyperliquid. On one hand, regulators may perceive Lazarus's activity as evidence of insufficient KYC/AML controls, which would delay the approval process. On the other hand, if the CFTC decides to act aggressively, the exchange will have to prove its good faith, which could take years. Under current conditions, I recommend that investors exercise caution with HYPE until the regulatory stance becomes clear.