Binance Faces Growing Scrutiny Over Potential Role in Hyperliquid Attack

Binance CEO Richard Teng recently doubled down on the company's dedication to transparency, security, and compliance.

However, the timing of this assertion has raised significant questions, as it coincides with rising suspicions that Binance might have been involved in an attack on Hyperliquid, a decentralized exchange viewed by some as a potential threat to centralized platforms like Binance. The crypto community has not missed the irony, with many pointing out the contrast between Teng’s statements and the ongoing controversy surrounding Binance.

The situation is complex and disturbing. The attack on Hyperliquid began with a calculated strategy by an unknown assailant who shorted JELLY futures while simultaneously purchasing large amounts of the meme coin on-chain, inflating its price artificially. This was followed by a strategic self-liquidation, which forced Hyperliquid’s liquidity provider to absorb a staggering $4.5 million loss.

As the price of JELLY continued to surge, a second wallet took a long position, securing substantial profits while Hyperliquid struggled to manage its exposure. In total, the exchange ended up losing over $10 million.

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The controversy deepened when blockchain analysis traced the funds used in the attack to OKX and Binance. This has led to speculations that centralized exchanges may have orchestrated the attack to destabilize Hyperliquid.

These theories gained more momentum when both exchanges announced the listing of JELLY perpetual futures around the same time the attack unfolded, further fueling concerns about the involvement of larger platforms. This backdrop of suspicion casts a shadow over Teng’s claims of compliance and transparency at Binance, leaving many to question the company’s true role in the unfolding drama.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.