Lazarus Group Exploits DeFi Loophole with $30M Hyperliquid Trades

The Lazarus Group, responsible for several high-profile hacks, has been linked to over $30 million in Bitcoin trades on Hyperliquid.

This recent activity exposes a significant vulnerability in decentralized exchanges, allowing hackers to launder stolen funds without proper screening.

Hyperventilating about the potential risks of DeFi's structural gaps is Emmett Gallic, an Arkham researcher who notes that centralised platforms require identity verification for large withdrawals, whereas Hyperliquid does not.

The Lazarus Group was also blamed for the March 2022 Ronin Bridge breach, which drained $625 million in cryptocurrency. In this latest episode, they routed stolen Bitcoin through Hyperliquid's order books instead of a centralized exchange.