China Cracks Down on Hyperliquid Money Laundering Scheme

Chinese authorities have investigated several instances of using Hyperliquid to launder illicit funds. The decentralized exchange’s high-leverage trading mechanism allowed users to disguise profits with risky bets, ultimately leading to the laundering of funds through counter-trading on centralized exchanges. These investigations were triggered by a surge in Hyperliquid’s trading volume reaching up to 50% of Binance’s derivative market, indicating a potential opportunity for illicit activities.