According to PeckShield, the theft stemmed from a private key compromise, allowing an attacker to drain the victim’s funds in a single swift move.
By Margaux Nijkerk, AI Boost|Edited by Oliver Knight
Updated Oct 10, 2025, 1:40 p.m. Published Oct 10, 2025, 1:38 p.m.
- Blockchain security firm PeckShield reported that a wallet on the decentralized trading platform Hyperliquid was drained of roughly $21 million in crypto assets after an attacker gained access to its private key.
- The stolen funds were bridged to Ethereum and moved through several addresses to obscure their origin.
- The attack underscores that user-side security remains a major vulnerability in decentralized finance.
Blockchain security firm PeckShield reported Friday that a wallet suffered a devastating loss of roughly $21 million worth of crypto assets on Hyperliquid, a decentralized trading platform.
According to PeckShield, the theft stemmed from a private key compromise, allowing an attacker to drain the victim’s funds in a single swift move.
STORY CONTINUES BELOW
The hack was isolated and was targeted towards the victim’s wallet, not HyperLiquid itself.
The stolen assets PeckShield claims included approximately 17.75 million DAI and 3.11 million MSYRUPUSDP, both of which the hacker has since bridged to Ethereum.
Onchain data shows that the attacker’s wallet executed a series of transactions to move the funds through multiple addresses, a tactic commonly used to obscure traces and complicate recovery efforts.
This incident highlights the persistent risk of private key exposure in decentralized systems — even as smart contract security improves, user-side vulnerabilities continue to be a major attack vector. T
he Hyperliquid case serves as yet another reminder that operational security and hardware wallet protection are critical to safeguarding digital assets in the self-custody era.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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