Blockchain data reviewed by CoinDesk shows that wallets tied to North Korea’s Lazarus Group moved more than $30 million in bitcoin through the derivatives platform Hyperliquid in just the last three weeks. The group, infamous for cyber heists that fund Pyongyang’s weapons programmes, has long exploited the borderless nature of crypto to evade sanctions. This latest activity has drawn a direct push from the Trump administration to “onshore” the platform — effectively bringing it under US regulatory oversight.
The pattern is familiar: a trading venue designed for open access becomes a conduit for illicit finance, and the world’s most powerful state responds with pressure. Hyperliquid processes billions in volume and has attracted serious capital, yet the incident illustrates a hard truth about permissionless systems. The same features that allow anyone to participate also make it difficult to exclude bad actors without centralised gatekeeping.
The administration’s approach does not seek to ban crypto outright. Instead, it leverages financial and legal leverage to compel platforms to comply with sanctions and know-your-customer rules — requiring registration, wallet blocking, or even relocation. The aim is to force a choice: play by the rules or be cut off from the dollar-based system that underpins global markets.
For the industry, this is a defining moment. The technology itself is not criminal — blockchain ledgers are transparent, as the investigation itself shows. The challenge is governance. The NYSE’s parent company ICE, meanwhile, is partnering with tZERO to build a regulated market for tokenised securities, demonstrating that the underlying technology can be integrated into the mainstream with proper oversight.
The Islamic concept of Al Baari — the Maker of Order — reminds us that creation is purposeful, not chaotic. In finance, order is not an enemy of innovation; it is a precondition for trust. The question is not whether crypto will be regulated, but how. Designed well, regulation can protect the public without extinguishing the benefits of open networks. The Lazarus Group’s actions are a stark reminder that without accountability, powerful tools can be turned to destructive ends.