Hyperliquid clarifies wallet sale, ex-employee linked to HYPE trades

Hyperliquid Addresses Token Sale Concerns, Upholds Strict Ethical Standards Amid Market Dominance and Significant HYPE Price Growth

  • Hyperliquid clarified that a wallet linked to significant HYPE token sales belongs to a former employee no longer with the company.
  • The company enforces strict ethical policies prohibiting employees and contractors from trading derivatives of the HYPE token.
  • Hyperliquid controls approximately 73% of the decentralized perpetual exchange market, with over $650 billion in trading volume in Q2 2025.
  • Despite volatility and a 24% decline this year, HYPE has increased roughly 290% since its November 2024 launch.

Hyperliquid, a decentralized perpetual exchange, addressed concerns regarding a wallet involved in large sales of its token HYPE. The wallet in question, flagged by community members for selling about 4,000 HYPE tokens (approximately $134,000) in one day, was confirmed by co-founder Iliensinc to belong to a former employee terminated in early 2024. “This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team’s standards or values,” said Iliensinc on the platform’s Discord channel, referencing the wallet address.

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Hyperliquid Labs maintains strict ethical guidelines to ensure accountability, prohibiting employees and contractors from trading derivatives related to the HYPE token, including shorting or going long on it. Trading based on material non-public information and sharing such information with third parties is also “fundamentally prohibited,” according to Iliensinc.

Founded in late 2022, Hyperliquid has grown to dominate the decentralized perpetual exchange market, handling at least $653 billion in trading volume during Q2 2025. This accounts for roughly 73% of the perp DEX market, as reported by CoinGecko. Arthur Hayes, co-founder of Bitmex, called Hyperliquid the Messari.io/research/deep-research-reports/hyperliquid-diligence-report-fdf9486f-d978-4a6f-980e-ccadc697b120?utm_source=chatgpt.com” rel=”noopener nofollow”>“best story” of the cycle so far, noting HYPE’s price surge from $2-3 at its November 2024 launch to a peak near $60 by mid-September 2025.

HYPE’s price has shown notable volatility in 2025, currently trading at $25.40. This represents a 24% decline over the past year but a gain of approximately 290% since launch, according to CoinGecko.

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