Chinese authorities have uncovered a series of money laundering schemes linked to the decentralized exchange (DEX) Hyperliquid. These cases highlight the challenges regulators face monitoring decentralized finance and raise questions about the methods used to obscure illicit funds within the crypto ecosystem. 3 distinct money laundering cases involving Hyperliquid were discovered in March, according to blockchain security firm Salus. These tactics exploit high-leverage perpetual contracts and liquidation mechanisms on the platform. Authorities are actively investigating these activities. While the full scope of these schemes remains under assessment, their potential scale suggests a coordinated effort by illicit actors targeting the opaque nature of decentralized exchanges.