Hyperliquid Denies Exploit From North Korea Hackers

Hyperliquid Denies Exploit From North Korea Hackers

The HYPE token plummeted 21% amid reports that North Korean hackers are targeting Hyperliquid for vulnerabilities. Taylor Monahan, an on-chain analyst, revealed that a wallet linked to these hackers lost $500,000 on the platform, suggesting possible research efforts.

Hyperliquid’s blockchain, operating with just four validators, faces criticism for potential security gaps that could be exploited if these nodes are compromised. Security researcher Nassim Eddequiouaq suggested that North Korean hackers may have already infiltrated the platform’s infrastructure.

Meanwhile, Hyperliquid Labs has dismissed these claims, stating on Discord that “all funds are safe” and denying any exploit. Despite this reassurance, Hyperliquid saw record outflows of $211 million in USDC on Monday, leaving $2 billion on the platform.

Some in the crypto community dismissed the warnings as unfounded fearmongering, while others called for immediate security reviews. North Korean hackers have stolen $1.34 billion this year, representing 61% of global crypto thefts, exhibiting the gravity of such threats.

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Unichain Mainnet Scheduled for Early 2025 Launch

Uniswap announced its DeFi-focused layer 2, Unichain, will launch its mainnet in early 2025. The project’s Sepolia testnet has processed 50 million transactions and deployed over 4 million contracts since October. Starting January 6, 2025, the testnet will activate permissionless fault proofs to bolster security by challenging invalid transactions.

Unichain aims to minimize risks with its decentralized Validation Network and verifiable block-building through Rollup-Boost. Post-launch, Unichain plans to integrate Flashblocks, reducing block times to 250 milliseconds for near-instantaneous transactions. Uniswap Labs will contribute to Optimism’s Superchain ecosystem, integrating Unichain’s technology.

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Securitize Proposes BlackRock Fund as Frax USD Collateral

Securitize has proposed using BlackRock’s $549 million BUIDL fund as collateral for the Frax USD stablecoin. The fund, backed by US government securities, offers yield opportunities and reduced counter-party risk. BUIDL-backed USDtb stablecoins launched in December, accumulating $65 million in total value locked on their first trading day.

The proposal aims to challenge the dominance of Tether and Circle in crypto collateral markets. BlackRock is actively integrating BUIDL as collateral across major crypto derivatives exchanges like Binance and OKX. Frax’s community must vote to finalize the addition of BUIDL as a reserve asset.

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MicroStrategy Acquires 5.2K Bitcoin at Peak Price

MicroStrategy purchased 5,262 Bitcoin last week at an average price of $106,662 per coin, totaling $561 million. The acquisition is the firm’s smallest since July 2024, yet aligns with its aggressive Bitcoin buying strategy. The company’s total holdings reached 444,262 BTC, acquired at an average cost of $62,257 each.

The announcement coincided with MicroStrategy joining the Nasdaq 100 index, marking a milestone for Bitcoin’s adoption in traditional equity markets. Concerns linger over potential slowdowns in 2025 due to regulatory uncertainties and market volatility. Founder Michael Saylor reiterated his commitment to accumulating Bitcoin regardless of price.

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Data of the Day

Crypto exchange-traded products (ETPs) recorded $308 million in net inflows last week, despite volatility from a Federal Reserve rate cut. Bitcoin led with $375 million in inflows, followed by Ethereum with $51 million. In contrast, Solana faced $8.7 million in outflows. Multi-asset investment products saw $121 million in outflows and the final two days of the week accounted for $1 billion in outflows.

One thing is certain: regardless of the volatility, price, or macroeconomic environment, ETPs, similar to MicroStrategy with Bitcoin, just continue to buy more crypto.

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More Breaking News

• Metaplanet Inc. expanded its Bitcoin holdings to 1,761.98 BTC with a $61 million purchase, funded by recent bond issuances.
• Sonic SVM, a Solana layer 2, will airdrop its SONIC tokens to TikTok users of its SonicX game, which has onboarded over 2 million players.
• Gate.io's GateToken (GT) hit an all-time high of $14.01 in December, influenced by growing user numbers and a December reserve report release.
• Donald Trump appointed former football player Bo Hines to lead his new Crypto Council, working with AI and crypto czar David Sacks to promote innovation.
• Crypto.com launched a sports prediction market in the US, inspired by Polymarket, allowing users to wager on outcomes like the Super Bowl.

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