Since March 2025, Chinese authorities have intercepted three money laundering cases linked to Hyperliquid, a permissionless perpetual DEX. The platform’s mechanism is used to hide profits by engaging in counter-trading on centralized exchanges.
Hyperliquid’s trading volume has occasionally soared to 50% of Binance’s derivatives market, which raised significant regulatory concerns. The platform remains KYC-free, resulting in challenges for monitoring anonymous transactions.
Recently, an advisor from World Liberty Fi shorted TRUMP tokens on Hyperliquid, leading to backlash from the community over perceived disloyalty. This trading action highlights the risks associated with unregulated platforms.
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