Hyperliquid whale loses $21M to wallet compromise as exploits target perp DEXs

Source Cryptopolitan

A Hyperliquid trader lost $21M from what was identified as a targeted attack that compromised their wallet. The trader lost over $17M in DAI, with the rest in Maple Protocol stablecoins. 

A Hyperliquid whale became the target of an exploit, presumably based on compromised private keys. The trader lost a total of $21M, of which over $17M was in DAI tokens. According to PeckShield Alert, only the personal wallet was affected through an unidentified type of private key leak. 

Hyperliquid itself is not compromised, and no other traders have reported losses. The recent loss extends the list of cases attacking perp DEX traders. As Hyperliquid is transparent when it comes to trades and wallet balances, the wallets are singled out for personalized exploits. 

Hacked wallet got liquidated on HYPE

The attacked wallet was drained just after closing a successful trade, so the exploiters knew the funds were available. The hacker’s actions affected multiple vaults on Hyperliquid, using the compromised accounts for activity on both Ethereum and Arbitrum. Additional reports suggest another $300K was lost on a related wallet linked to the same user. 

The exploit started after the wallet closed a $16M long position on HYPE, and the wallet immediately sold 100K HYPE for $4.4M. The token was sold for DAI, which was then transferred on Ethereum and mixed. 

Additionally, due to the compromised wallet, the hacker was able to take a $3.1M stake from the Plasma Syrup Vault. The hacker moved MSYRUPUSDP to a new address, for now, without further swaps or mixing. 

The hacker now holds $6.91M in one wallet on Ethereum, another $10M in a different Ethereum address, while emptying the intermediary Arbitrum wallet used for the initial wallet draining. 

Is Hyperliquid at risk of hacks?

Previously, Hyperliquid has seen FUD about being vulnerable to North Korean hackers. However, the exchange holds no funds in custody and has not been hacked so far. The DEX still holds a risk of aggressive trading and draining specific vaults, especially for low-liquidity assets. 

Following the recent whale wallet attack, HYPE remained at $44.41, awaiting another breakout. 

The only problem in the future would be for the owner of the compromised wallet. Currently, Hyperliquid is preparing for another airdrop season, with multiple new projects set to launch their tokens. The compromised wallet may receive rewards based on trading volumes, but those may also be swept by the hacker. 

Previously, a list of 1,200 compromised addresses emerged, with some active on Hyperliquid. However, none of those addresses held any significant funds. There is still no explanation on how the wallet was compromised, though recent attacks have involved malware, fake 2FA authentication, fake Zoom links and more. 

Get up to $30,050 in trading rewards when you join Bybit today

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Fed Rate Decision Looms as Apple, Microsoft, Meta and Tesla Q4 Earnings Draw Attention: Week AheadLast week, U.S. stocks experienced volatility triggered by Donald Trump's remarks on imposing tariffs on Europe. The Dow fell 0.53% for the week, the S&P 500 slipped 0.35%, and the Nasdaq
Author  TradingKey
8 hours ago
Last week, U.S. stocks experienced volatility triggered by Donald Trump's remarks on imposing tariffs on Europe. The Dow fell 0.53% for the week, the S&P 500 slipped 0.35%, and the Nasdaq
placeholder
Cardano Price Forecast: ADA Selling Pressure Builds, Putting $0.27 Back in FocusCardano trades near $0.34 after three weeks of declines, with Binance futures open interest down to $108.55M and bearish RSI/MACD signals keeping risks tilted toward $0.32 and potentially $0.27.
Author  Mitrade
13 hours ago
Cardano trades near $0.34 after three weeks of declines, with Binance futures open interest down to $108.55M and bearish RSI/MACD signals keeping risks tilted toward $0.32 and potentially $0.27.
placeholder
Bitcoin Slides Into Weekly Close as Bulls Confront $86K Price TestBitcoin has started to lose momentum as U.S. futures prepare for opening, with markets bracing for anticipated volatility catalysts. The cryptocurrency witnessed multi-day lows leading up to the end of the week, as investors face a looming period of macroeconomic uncertainty.
Author  Mitrade
16 hours ago
Bitcoin has started to lose momentum as U.S. futures prepare for opening, with markets bracing for anticipated volatility catalysts. The cryptocurrency witnessed multi-day lows leading up to the end of the week, as investors face a looming period of macroeconomic uncertainty.
placeholder
Yen Exchange Rate’s Shock Jump. Dropping 200 Pips Near 160 Level, BOJ’s Inaction Hides a Mystery, Buy the Dip or Seek Safety?The 'rollercoaster' Yen has once again become the focus of the foreign exchange market! On January 23, USD/JPY experienced a series of 'rollercoaster' short-term movements, plunging nearl
Author  TradingKey
Jan 23, Fri
The 'rollercoaster' Yen has once again become the focus of the foreign exchange market! On January 23, USD/JPY experienced a series of 'rollercoaster' short-term movements, plunging nearl
placeholder
AUD/JPY retreats from 109.00 as "rate check" by Japan's Finance Ministry lifts JPYThe AUD/JPY cross retreats nearly 130 pips from the highest level since July 2024, around the 109.00 mark touched earlier this Friday, though the pullback lacks follow-through.
Author  FXStreet
Jan 23, Fri
The AUD/JPY cross retreats nearly 130 pips from the highest level since July 2024, around the 109.00 mark touched earlier this Friday, though the pullback lacks follow-through.
goTop
quote