Crypto Reporter
Shalini Nagarajan
Crypto Reporter
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Decentralized perpetual futures exchange Hyperliquid has confirmed that a wallet address accused by the community of shorting $HYPE belongs to an ex-employee who was terminated in Q1 2024.
The address, 0x7ae4…1028, surfaced repeatedly in late November and this month on X, where users tracked on-chain movements around $HYPE distributions and sales soon after the token’s launch.
Community posts described it as a suspected team or insider wallet, pointing to what they said were spot holdings of about 170,600 $HYPE at the time, along with transfers that appeared to route activity toward the HyperEVM.
The scrutiny intensified after trackers alleged the wallet sold 1,200 $HYPE and continued to offload more through Time-Weighted Average Price-style selling, with one widely shared estimate putting a further 3,700 $HYPE on the tape, worth about $110,000 at the time.
Those claims fed into a broader debate over whether post-launch selling was coming from insiders, especially as traders watched $HYPE perps and spot liquidity for signs of persistent pressure.
Hyperliquid Moves To Contain Fallout From Wallet Claims
Hyperliquid addressed the speculation in a Discord announcement, pairing the clarification with a reminder of internal conduct rules for anyone associated with the project.
To address recent community inquiries regarding the address, the team wrote that it belongs to an ex-employee terminated in Q1 2024.
“This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team’s standards or values.”
In the same message, Hyperliquid said it enforces strict ethical standards around the $HYPE token, including a prohibition on team members trading $HYPE derivatives and a zero tolerance stance on insider trading, with violations triggering immediate termination and potential legal action. “Integrity is non-negotiable at Hyperliquid Labs.”
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