TL;DR:
- CZ denies any link to a wallet exploit on the Hyperliquid decentralized exchange.
- The allegations stemmed from wallet activity that observers misinterpreted.
- Hyperliquid is investigating the incident, as CZ warns against spreading unverified claims.
A new controversy has erupted in the crypto community after accusations surfaced linking Binance founder Changpeng Zhao (CZ) to an exploit targeting a wallet on the Hyperliquid decentralized exchange. The claims spread rapidly across social platforms, prompting CZ to issue a public denial and demand evidence from those fueling the allegations.
Glad to know I live rent free in your head. 😂
But I have not used any other CEX for 8 years. 🤷♂️
— CZ 🔶 BNB (@cz_binance) November 12, 2025
CZ Calls the Allegations “Fabricated and Baseless”
CZ swiftly rejected the accusations, stating he has no involvement with the wallet in question or with Hyperliquid itself. The wallet, which was allegedly linked to the exploit, was accused of siphoning user funds — an event that led some online commentators to speculate on CZ’s connection. However, he emphasized that such rumors are “completely unfounded” and potentially damaging to his reputation.
The incident began after on-chain activity revealed suspicious movements involving a wallet associated with Hyperliquid, a decentralized trading platform known for its derivatives products. Analysts tracking the funds noticed links between the attacker’s wallet and one that had previously interacted with Binance, sparking widespread theories about a deeper connection.
CZ clarified that while he remains an active participant in the crypto industry, he has had no operational role at Binance since stepping down from his CEO position in 2023. “People continue to attach my name to any major crypto event,” he said, adding that “false narratives do real harm.”
Hyperliquid has not confirmed any connection between the wallet exploit and CZ. The platform’s team is reportedly investigating the matter internally and strengthening its security protocols to prevent future incidents. On-chain data continues to be analyzed to determine the true origin of the attack and whether multiple parties were involved.
The episode underscores a growing issue in crypto’s social media landscape: how quickly misinformation spreads before verifiable facts emerge. For CZ, the event marks yet another reminder of the challenges high-profile figures face in maintaining credibility amid rumor-driven markets.
