- A crypto trader was incorrectly blocked on Hyperliquid for suspected high-risk activities.
- The trader protested being logged out and sought help from social media users.
- Blockaid clears the trader’s account, says issue likely linked to wallet provider.
A recent issue involving a cryptocurrency trader on Hyperliquid has raised concerns over how cryptocurrency service providers manage users’ access without proper communication. In a now-resolved case, the trader had his wallet flagged as “high-risk” without an explanation, leading him to make an outburst on X.
A Trader’s Ordeal on Hyperliquid
On March 29, the trader, identified as Maxime, took to the social media platform X to complain about the lack of clarity and a fair review process after being logged out of the Hyperliquid trading platform. He used the opportunity to seek help from crypto community members, soliciting information that could help resolve the issue with his primary trading account.
According to the trader, Hyperliquid banned him after a third-party screening tool flagged his wallet as “high-risk,” restricting him from connecting to the platform’s frontend. He outlined his credentials as a long-term organic trader on the platform, even though he had been less active over the past two months.
Third Parties Manage Hyperliquid’s Security
Despite his displeasure with being locked out of the platform, he affirmed his belief in the Hyperliquid team, which he thinks has built something exceptional. However, his major concern was with the project’s Discord management, which timed him out for a week after he complained about his issues.
Before being timed out, the trader was told that an independent blockchain analytics provider flagged his wallet as “high risk,” blocking him from accessing the Hyperliquid blockchain via the app.
Blockaid to the Rescue
Fortunately for the trader, his appeal to crypto community members on social media paid off, as some users advised him to reach out to Blockaid, the AML firm that may have flagged his account. Following an email he sent to the security company, Blockaid confirmed that his account was free from malicious flags, suggesting the issue might have originated from his wallet provider.
The trader acknowledged that the issue had been resolved and appreciated Blockaid’s responsiveness. He also thanked the crypto community for proper guidance and for helping him retrieve his account. Meanwhile, other crypto users commended how the issue was addressed, applauding Hyperliquid for choosing Blockaid to manage their security concerns.
Related: Liquidated Hyperliquid Whale Returns With $400K HYPE Buy
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