Forget sanctions, the real threat to North Korea’s illicit funding operations is apparently the volatility of the crypto market. The North Korean hackers lost almost half a million dollars while trading on the decentralized exchange Hyperliquid in just 48 hours.
As per the data of Lookchain, a North Korean gruoup turned $476,489 in USDC into a mere $18,187, suffering a massive $458,000 loss.
North Korean Hackers Lose $458K, Source: X
The hackers deposited $476,489 into Hyperliquid, a decentralized platform known for fast transactions and anonymity. They placed a high-stakes bet, going long on Ethereum (ETH) at $3,791.8, expecting the price to rise. However, when ETH’s price dropped to $3,251.8, their position was liquidated, wiping out most of their funds.
North Korea is known for cyberattacks on crypto exchanges and DeFi platforms, often using stolen funds to bypass international sanctions. This loss shows they might be trying riskier trading strategies to boost profits, but they failed badly this time.
The loss of $458,000 is substantial, especially considering the sophisticated nature of North Korean hacking groups like Lazarus, known for their cyber thefts to fund state activities.
Ethereum’s price swings can be both exciting and risky. While traders enjoy the potential for big gains, this volatility also makes leveraged trades very dangerous. This case highlights the importance of better risk management, even for experienced traders.
Hyperliquid is a decentralized exchange (DEX) on its own Layer 1 blockchain, offering ultra-fast trading with block times under one second and up to 100,000 orders per second, combining decentralization with high efficiency.
Hyperliquid’s involvement raises concerns about how DeFi platforms handle large, suspicious trades. As these platforms grow, it’s crucial to ensure they aren’t being used for illegal activities like money laundering or bypassing sanctions.
Despite recent price drops, ETH is showing signs of recovery. After the recent price drop, Ethereum is starting to show signs of recovery. After the U.S. election years, ETH has performed very well in the early months and shows the significant gains recorded in 2017 and 2021. If this trend continues, Ethereum could see bullish momentum in early 2025.
This dramatic loss serves as a reminder of the risks in cryptocurrency trading, even for groups with a history of sophisticated operations. Whether this will change their approach or lead to even riskier moves remains to be seen.
