Chinese authorities are investigating cases of using high lipids to wash funds. Dex liquidation engines are used to hide profits with risky bets.
Chinese authorities intercepted three money launderings, including lipid-levered positions. According to Mirry Tang, founder of web3 security company Salus, Hyper Liquid is ideal for creating surface losses, which has since been offset by anti-trade in centralized markets.
Tang explained that the mechanism is similar to James Tang’s deal, which has been liquidated multiple times in the past two weeks. Authorities have discovered potential laundry during a period of constant growth in high lipid trading volumes, reaching up to 50% of Binance’s derivatives market.
Since March this year, Chinese law enforcement has solved three cases of washing money in cryptocurrency using @hyperliquidx.
The operation method uses Hyperliquid’s high leveraged liquidation mechanism to wash away illegal income, generate liquidation losses in HL, make profits in reverse position construction into centralized exchanges, and create a complete fund bleach.
This policy structure is very similar to the @jameswynnreal operation path
Please @chameleon_jeff…
– Mirror Tang (@mirrorzk) June 6, 2025
High lipids retain the ability to generate significant losses and profits as they returned 40x leverage in on-chain trading. Permanent DEX has been increasing its influence on the crypto market, especially after the involvement of high-profile whales and dangerous traders. James Wynn.
Trading on the chain with high lipids means that all the big positions are transparent and can attract counter traders. This means that some positions are left to be intentionally liquidated, knowing that they will cause a significant price transfer of BTC or other assets.
High liquids are still in the Kyc environment, allowing anyone to open positions that are difficult to identify anonymously. Unofficially, investigators on the chain are tracking the suspicious Cluster of liquidationsometimes up to $99 million. Wallets used with high lipids can also be completely separate from other exchange accounts without direct transfer to the KYC exchange. This will result in the whales having clean revenue from trading and having a proving origin from a centralized market.
Previously, on-chain forensics with ZachxBT indicate that high lipids are used by hackers William Parker. In addition to the laundry fund, Parker made $20 million Melania’s short.
High liquids remain outside regulatory scrutiny
Lipids are still not permitted despite the significant risk of loss. DEX often uses USDC as collateral. This is the only asset that can be frozen on request. However, even in the case of yen, USDC freezes are rare.
High-risk freezes are causing constant USDC inflows despite risky transactions and potential money laundering, but constant USDC inflows. |Source: Dune Analytics
A total of $276 million in USDC is overlaid with high lipids, making it the only tool to halt trading at the request of the authorities. Tokens are held in liquidity vaults and personal accounts.
Most of the biggest liquidations come from the BTC and ETH markets, but even meme token positions offer great leverage.
High lipids used to shorten playing card tokens
The popularity of high lipids means there is no limit to trading or even insider involvement.
Recently, advisors at the world’s Liberty FI have opened a short position with official Trump (Trump) after the assets began tanking on past days. The advisor known as @cryptogle has received backlash from a community that appears to be dishonest. he I insisted World Liberty Fi and Trump Meme Token were separate projects.
The position’s liquidation price was $12.48, with Trump trading around $9.72. Whale entry is $9.48 position Loss of more than $60,000 as Trump’s prices recovered from low prices.
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