Blockchain data reviewed by CoinDesk shows wallets tied to North Korea's Lazarus Group sold more than $30 million in bitcoin on the Hyperliquid platform in the last three weeks alone. The sales mark one of the largest known liquidation sprees by the sanctioned hacking collective on a single decentralized exchange. The move comes as Hyperliquid has been under scrutiny for its handling of large trades and its ties to high-risk actors.
How the sales unfolded
According to the on-chain analysis, the wallets began offloading bitcoin in mid-August, with the pace picking up sharply in the final week. The total exceeds $30 million, though the exact number of transactions wasn't disclosed. The sales were spread across multiple addresses, a common tactic used by Lazarus to avoid triggering exchange risk controls.
Hyperliquid, a perpetuals DEX that has grown rapidly this year, doesn't require KYC for trading. That makes it an attractive venue for entities looking to move large sums without identity checks. The platform has previously said it monitors for suspicious activity, but the Lazarus sales appear to have gone through without interruption.
Lazarus Group is a state-sponsored hacking unit that has been blamed for billions in crypto thefts, including the $1.5 billion Bybit hack earlier this year. The group typically launders stolen funds through mixers and cross-chain bridges, but direct sales on a major DEX are less common. The fact that they chose Hyperliquid suggests the platform's liquidity and low friction are worth the risk of exposure.
This isn't the first time Hyperliquid has been linked to questionable flows. In June, the exchange faced criticism after a wallet connected to a sanctioned entity traded large volumes without being blocked. The latest activity raises questions about how effective the platform's monitoring really is.
What happens next
CoinDesk's report doesn't say whether Hyperliquid has taken any action against the wallets. The exchange hasn't publicly commented on the sales. Given the scale, it's likely that law enforcement and blockchain analytics firms will be tracking the funds as they move. Whether Hyperliquid will tighten its controls or face regulatory pressure remains an open question.
