Hyperliquid Confirms Ex-Employee is Linked to $HYPE Shorting Wallet Address

The decentralized perpetual futures exchange, Hyperliquid, has confirmed that a wallet address involved in $HYPE shorting belongs to a former employee who was dismissed in Q1 2024. This news follows community scrutiny over the wallet's activity during the token's recent launch.

Key Takeaways

Hyperliquid confirmed that a wallet linked to shorting $HYPE belongs to an ex-employee.
The address, 0x7ae4…1028, has been under investigation for selling large amounts of $HYPE shortly after its launch.
The team has reiterated its commitment to ethical trading standards and disassociates itself from the ex-employee’s actions.

Hyperliquid

Ex-Employee's Wallet Under Scrutiny

Hyperliquid, a decentralized platform for perpetual futures trading, has disclosed that a wallet address accused of shorting the $HYPE token is owned by a former employee terminated in early 2024. The address, 0x7ae4…1028, gained attention on social media in late November and early December when community members tracked on-chain activities related to $HYPE distributions and sales soon after the token's launch.

Posts within the community speculated that this address was associated with the team or insiders due to its significant holding of around 170,600 $HYPE at the time, along with transactions that seemed to connect activity back to HyperEVM.

Concerns over Post-Launch $HYPE Sales

Interest in this matter intensified when various trackers reported that the wallet sold approximately 1,200 $HYPE, continuing with incremental sales that resembled Time-Weighted Average Price-style strategies. Some estimates suggested that a total of around 3,700 $HYPE was sold, valuing approximately $110,000 at that time.

These allegations sparked a larger discussion on the source of selling pressure following the $HYPE launch, particularly concerning whether it originated from insiders, as traders monitored the liquidity of $HYPE and its perpetual contracts for signs of ongoing selling pressure.

Hyperliquid’s Response to Wallet Allegations

In response to the growing concerns, Hyperliquid took to Discord to clarify the situation and remind the community of its internal conduct regulations. The team confirmed that the wallet in question belonged to an ex-employee who was terminated in Q1 2024.

“This individual no longer has any association with Hyperliquid Labs, and their actions do not align with our team's values or standards,” stated the announcement.

Furthermore, Hyperliquid emphasized its commitment to maintaining high ethical standards around $HYPE, explicitly stating that team members are prohibited from trading $HYPE derivatives. The platform has a zero-tolerance policy towards insider trading, with violations resulting in immediate termination and potential legal action. “Integrity is non-negotiable at Hyperliquid Labs.”