Ever wondered how bad actors launder stolen funds using crypto exchanges? Here's a simplified breakdown of how they exploit HyperLiquid and leverage trading:
⚠️ The Process:
1️⃣ Deposit $5M in stolen funds into HyperLiquid (HL).
2️⃣ Use 50x leverage to open a $250M short position (against funding).
3️⃣ Hedge the short by opening $250M in longs on other exchanges using "clean" money.
4️⃣ A 2% price drop wipes out the HL short → stolen funds are gone.
5️⃣ Meanwhile, the longs on other exchanges gain 2% profit = $5M, now fully laundered.
🧐 Why This Works:
✅ High leverage forces liquidation on small moves.
✅ Shorting against funding makes a squeeze more likely.
✅ Hedging positions across platforms makes tracking difficult.
🔄 Rinse, repeat, cash out. 🚨
📌 Reality Check: Scammers tweak position sizes & strategies to avoid direct tracking, making detection harder.
💬 What do you think of this exploit? Should exchanges tighten leverage trading rules? Let’s discuss! 👇
#CryptoScams #Hyperliquid #MoneyLaundering #LeverageTrading #CryptoDash