Hyperliquid (Hype) Crypto Trading Platform Is Under the Microscope for Multiple Hoog-Leverage Trades

Crypto Trading Platform Hyperliquid (Hype) is under the microscope. Multiple Hoog-Leverage Trades in Bitcoin (BTC) and Ethereum (ETH) have evoked suspicions

Crypto trading platform Hyperliquid (Hype) is under the microscope as multiple high-leverage trades in Bitcoin (BTC) and Ethereum (ETH) have evoked suspicions of possible money laundering activities.

Analysts have noticed a pattern of unusually large and frequent leveraged trades that have been performed with almost perfect timing, leading to questions about the origin of the funds and the identity of the traders.

Spotonchain marks high-stakes trades

Blockchain analysis platform Spotonchain reported a series of significant leveraged trades performed on the Hyperliquid platform. According to their analysis, a well-funded trader collected 5.22 million on the platform to open high-lung positions in BTC and ETH.

The trader placed an ETH Long position with 50x leverage, with an entry price of 1,884.4 and a liquidation point of 1,838.2. In addition, they opened a BTC long position with 20x lever, with an entry price of 82.003.9 and a liquidation price of 61.182.

Spotonchain also revealed that this trader had a history of performing short-term leveraged trades with a 100% win rate. The trader achieved 2.2 million profit in just two days.

“It is remarkable that in the past 2 days this Whale closed two fast ETH Long positions with a 100% WinRate, which yielded $ 2.2 million profit,” unveiled Spotonchain.

The consistency of these trades has led to speculation that the activity is not random market speculation. Instead, it tends towards a refined money laundering operation or an insider trading scheme.

Ab Kuai Dong, a cryptomarktalist, speculated that the funds in this Hyperliquid trades were used, possibly linked to North Korean hackers. The analyst noted that North Korean cyber criminals are known for testing high-frequency trading strategies on crypto platforms as part of money laundering operations.

The analyst suggested that it could be an attempt to clean illegal funds obtained by hacking. This assumption is based on the anonymity and rapid execution of the hyperliquid trades.

“I am very curious about these large anonymous orders from Hyperliquid. Combined with the earlier news about North Korean hackers who test Hyper Trading, it is possible that these large and frequent 50-fold openings are all gray market funds that money laundering?” stated the analyst.

Another analyst, known as AI on X, supported this theory by pointing out earlier research on hyperliquid trades. At the beginning of March, AI reported that three addresses had generated 2.53 million profit via GMX high-leverage trades.

Gambling or Insider Trading? Experts give their opinion

These addresses were linked to gambling platforms such as Roobet and Alpapo. They also had interaction with Changenow, an exchange that is popular with hackers. AI speculated that traders may not be insiders, but experience gamblers who may use stolen funds to perform risky trades.

“Insider or ultimate gambler? It indeed looks more like the latter,” believed the analyst.

Crypto analyst Adolyb, who quoted Coinbase’s Conor Grogan research, provided further proof of possible illegal activities.

“Coinbase people discovered that it is a phishing address with 4 layers of jumps + gambling players,” noticed Adolyb on X.

According to Grogan, the crypto wallet responsible for some suspicious hyperliquid trades funds of phishing attacks. He described the account as a “Roobet Whale,” which suggests that the trader was often involved in high-stakes gambling on platforms that are historically associated with illegal money flows.

Grog noticed that this person had previously liquidated lung positions just for an important market event. According to the analyst, this indicates that their trades were not based on insider knowledge. Stolen funds are used for gambling instead.

The reports have again aroused worries about the use of high-liver trading platforms for illegal financial activities. Although leverage traders enable to increase their positions, it also enables criminals to quickly move and hide large sums of money.

The anonymity offered by decentralized and offshore exchanges makes further attempts to follow and regulate such transactions. It is likely that regulators and blockchain-forensic companies will increase their control over similar activities. This in the midst of increasing evidence that the high-delivery trades of hyperliquid are linked to possible illegal sources.

BeInCrypto shows data that the course of hyperliquid’s token has fallen almost 8% since the session started on Wednesday. At the time of writing, hype was traded for 13.35.