Hyperliquid has responded to rising concerns over post-launch HYPE selling after weeks of on-chain scrutiny by traders.
Community discussions had linked the wallet activity to possible insider behavior. In particular, traders flagged repeated transfers and sales that appeared to coincide with pressure on spot markets and perpetual futures liquidity.
Hyperliquid now says the wallet has no connection to its current team.
Hyperliquid clarifies status of wallet linked to HYPE activity
In a Discord announcement, Hyperliquid said the wallet address 0x7ae4…1028 belongs to a former employee.
The company stated it terminated the individual in the first quarter of 2024. It added that the person no longer has any affiliation with Hyperliquid Labs and their actions do not reflect the exchange’s standards or values.
The statement followed claims that the wallet played a role in early HYPE selling after the token launch.
The wallet had allegedly sold about 1,200 HYPE shortly after launch, with on-chain trackers claiming the address continued selling through time-weighted average price-style execution.
The on-chain trackers described the address as holding around 170,600 HYPE at one point.
Community members also pointed to transfers that appeared to route funds toward the HyperEVM, fueling claims that insiders may have contributed to sustained selling pressure.
While Hyperliquid said the clarification addresses recent inquiries and misinformation circulating across social platforms, the exchange did not provide further details on the former employee’s trading behavior. However, it emphasized that the individual acted independently and without any current internal involvement.
Exchange reaffirms ethical rules around HYPE trading
Alongside the clarification, Hyperliquid reiterated its internal policies governing HYPE.
The company said it enforces strict ethical rules for all team members. Those rules include a ban on employees trading HYPE derivatives.
Hyperliquid also said it maintains a zero-tolerance policy on insider trading. The firm stated that any violation leads to immediate termination and may prompt legal action. “Integrity is non-negotiable at Hyperliquid Labs,” the team said.
The exchange said it will continue engaging with the community as questions emerge.
For now, Hyperliquid has framed the wallet controversy as an isolated case rather than a broader governance issue tied to the HYPE launch.
At the time of writing, the Hyperliquid price was currently exchanging hands at $25.05, up by 4% for the past 24 hours.