Michaela Alvez
Tech company Hyperliquid Labs has denied accusations that North Korean hackers compromised its layer-1 protocol, asserting that the claims are unfounded.
In a statement shared on the project’s Discord server, Hyperliquid Labs clarified that “no vulnerabilities have been disclosed by any party” and invited white hat hackers to submit bug reports as part of their ongoing bug bounty program.
On December 23, a large holder of HYPE tokens sold 1 million units, following rumors that North Korean hackers had been involved in trading on the layer-1 blockchain.
MetaMask developer Taylor Manohan suggested that hackers, potentially linked to the infamous Lazarus Group, might be testing for vulnerabilities. Her comments sparked backlash from the crypto community, with many accusing her of spreading “FUD” — fear, uncertainty, and doubt — about Hyperliquid, igniting heated debates on social media.
However, prominent industry figures such as Polygon CISO Mudit Gupta came to Manohan’s defense. In a post on X, Gupta expressed support for Manohan’s recommendation to improve security by decentralizing multi-signatory permissions and addressing potential central points of failure.
North Korea and Its Lazarus Group
North Korea has gained global attention for its involvement in cybercrime, particularly in the cryptocurrency space, where state-backed hackers have targeted exchanges, decentralized finance (DeFi) platforms, and cryptocurrency wallets to fund the regime’s activities.
These attacks are believed to be part of North Korea’s broader efforts to circumvent international sanctions and finance its missile and nuclear programs.
The Lazarus Group, a cybercrime unit with direct links to North Korea, is widely considered to be behind many of these operations. This group is notorious for its sophisticated hacking tactics, often involving phishing, malware, and ransomware. They are believed to operate under the control of North Korea’s Ministry of State Security.
The group is known to exploit weaknesses in the cryptocurrency ecosystem, including decentralized exchanges, which lack the stringent regulations and safeguards found on traditional platforms.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
