China detects three money laundering cases linked to Hyperliquid, suspects involvement of James Wynn

Mirror Tang, founder of blockchain security firm Salus, revealed on X that since March, Chinese authorities have uncovered three money laundering cases involving the decentralized exchange (DEX) Hyperliquid. The investigations showed that these schemes exploited Hyperliquid’s high-leverage liquidation mechanism to launder illicit funds by intentionally triggering liquidations on Hyperliquid while taking offsetting positions on centralized exchanges. Notably, this method closely resembles the trading patterns of a well-known Hyperliquid whale, James Wynn.