Overview
- Blockchain analysis published and reviewed by multiple outlets shows wallets linked to the OFAC‑sanctioned Lazarus Group sold more than $30 million in bitcoin through Hyperliquid over a three‑week period, according to Arkham data reported Monday.
- The traced funds were converted into Ethereum and Solana and then routed across chains to centralized exchanges including Kraken, KuCoin and LBank, though public on‑chain records do not show who controls the receiving exchange accounts.
- Kraken, KuCoin and LBank said they use monitoring tools and analytics but told reporters they cannot confirm account‑level attribution from public blockchain records without reviewing internal wallet or account data.
- Hyperliquid’s wallet‑direct, permissionless design lets users trade from self‑custodied addresses without opening brokerage accounts, a structure that makes traditional sanctions screening and identity checks harder to enforce on the platform itself.
- Payward, Kraken’s parent, is in advanced, unconfirmed talks to use its Bitnomial regulatory structure to offer select Hyperliquid perpetuals to U.S. traders, a step that would still require regulator approval and solutions for screening, customer ID, clearing and custody.