Hyperliquid 50x Leverage Whale Is Not a Sophisticated Trader, It's a Cybercriminal Gambling with Stolen Funds

On-chain investigator ZachXBT revealed that the widely-discussed “Hyperliquid 50x leverage whale” is not a sophisticated trader. It is in fact, a cybercriminal recklessly gambling with stolen funds.

On-chain investigator ZachXBT has revealed that the widely-discussed “Hyperliquid 50x leverage whale” is not a sophisticated trader but rather a cybercriminal recklessly gambling with stolen funds.

The revelation comes after weeks of traders speculating on the identity and motives of the whale who has been placing trades with up to 50x leverage on the Hyperliquid decentralized exchange.

Taking to X, formerly Twitter, ZachXBT put paid to rumors linking the address to North Korea’s Lazarus Group, which is linked to several large crypto thefts.

Instead, he said that the entity is simply a criminal misusing stolen assets in an attempt to generate massive returns through extreme leverage.

Stolen Funds Used For High-Leverage Trading

The Hyperliquid whale drew attention for its high-risk, high-reward trades, which led independent traders and analysts to scrutinize the legitimacy of the whale’s actions.

Further investigations traced the source of the whale’s funds to illicit activities, suggesting a pattern of laundering stolen assets through reckless speculative trading.

Rather than executing calculated market plays, the individual appears to engage in high-stakes gambling, risking significant capital with extreme leverage. This has resulted in considerable volatility and has drawn the interest of traders eager to exploit the situation for profit.

However, high-leverage trading carries immense risks, especially when fueled by stolen funds. Such activities can lead to significant market disruptions, mainly due to the potential for sudden liquidations to trigger ripple effects across exchanges.

No Connection To Lazarus Group

Despite early speculation, ZachXBT’s findings confirm that the whale’s address has no ties to North Korea’s Lazarus Group.

The group, known for its sophisticated hacking operations, has been responsible for several cyberattacks and cryptocurrency heists in recent years.

The group has frequently laundered funds through complex obfuscation techniques and DeFi platforms. However, the Hyperliquid whale’s trading behavior and financial patterns do not align with their usual methods.

Lazarus Group is notorious for its highly coordinated hacking strategies. They often target centralized exchanges and large-scale DeFi protocols like the recent attack on Bybit.

Their tactics typically involve multi-stage laundering efforts to obfuscate the origins of stolen funds, making it difficult for investigators to track their movements.

In contrast, the Hyperliquid whale has openly engaged in risky, visible trades that make their activities far less discreet.

The stark difference has led experts to rule out any ties to the North Korean hacking syndicate. This shifts attention away from geopolitical concerns and toward the broader implications of stolen funds being used for high-risk trading.

The market remains on edge, with the next move potentially affecting the markets. The whale’s continued activity could lead to further volatility as independent traders attempt to counter its strategies.

Some have even likened the situation to previous coordinated efforts where retail traders tried to push back against dominant market players.

With the Hyperliquid whale’s position now in the spotlight, investigators and market participants will be closely monitoring its future trades.