Hyperliquid’s $254K HYPE Token Donation to On-Chain Sleuth ZachXBT Sends Shockwaves Through Crypto

In a move that's part PR masterstroke, part genuine nod to blockchain's unsung heroes, a major decentralized exchange just made a six-figure statement.

The On-Chain Donation That Speaks Volumes

Forget traditional press releases. Hyperliquid opted for the most transparent ledger in existence—the blockchain itself—to transfer a staggering 10,000 HYPE tokens. Valued at a cool $254,000, this isn't just a donation; it's a public endorsement of crypto's detective work, permanently etched into the chain for all to see.

Funding the Watchdogs

The recipient? ZachXBT, the pseudonymous investigator whose forensic on-chain analysis has unraveled more scams than most regulatory bodies. This hefty contribution directly fuels the tools and time needed to track rug pulls, trace stolen funds, and hold bad actors accountable—a task that often operates outside the traditional finance safety net. It's a stark reminder that in the wild west of DeFi, the community sometimes has to fund its own sheriffs.

A Calculated Signal to the Market

Beyond the altruism, the move is a brilliantly calculated signal. It demonstrates Hyperliquid's substantial treasury strength and aligns the platform with the values of security and transparency—cornerstones for any exchange looking to attract serious capital. In an industry where trust is the ultimate currency, backing its most effective auditor is a powerful play. After all, what better way to prove you're not the villain than by bankrolling the hero?

The gesture cuts through the typical corporate philanthropy noise, bypassing middlemen and landing directly in the wallet of someone who delivers real results. It sets a provocative precedent: should ecosystem health be funded by the very protocols that benefit from it? While traditional finance titans write checks to galas, crypto's leaders are funding the trench warfare against fraud itself—arguably a far better return on investment for the entire space.

Why did Hyperliquid donate money to ZachXBT?

Some see the contribution as a symbolic gesture from a DeFi platform towards an investigator who has previously exposed fraudulent activity on its own network. However, neither the Hyperliquid Foundation nor ZachXBT have shared any specific reason for the donation.

ZachXBT is a pseudonymous blockchain investigator who is also an advisor at crypto investment firm, Paradigm.

ZachXBT, who has maintained anonymity, relies on community donations and grants to fund his work and also fight litigation.

His investigative methods involve tracing cryptocurrency flows across blockchain networks, using techniques such as address clustering to uncover hidden connections between wallets and expose fraud patterns.

The investigator has helped track hundreds of millions of dollars across different cryptocurrency exploits, and his approach has positioned him as one of the industry’s most prominent fraud detectives.

Recently, he spotlighted an incident that occurred on January 10, where a victim lost over $282 million worth of LTC and BTC due to a hardware wallet social engineering scam, as Cryptopolitan reported.

According to ZachXBT, “The attacker began converting the stolen LTC & BTC to Monero via multiple instant exchanges, causing the XMR price to sharply increase. BTC was also bridged to Ethereum, Ripple, & Litecoin via Thorchain.”

The investigator also shared the theft address.

Does ZachBXT have any ties to Hyperliquid?

The donation carries particular significance given ZachXBT’s investigative works involving Hyperliquid’s platform.

In March 2025, ZachXBT uncovered an elaborate scam and the identity of the individual at the center of the scheme, which happened to be a high-profile trader on Hyperliquid’s decentralized exchange.

The person behind the scam was William Parker, a UK national with a criminal history involving fraud and casino theft. At the time, ZachXBT’s investigation revealed that Parker’s trading wallet had received funds from victims of phishing scams and other potentially illicit sources.

Parker had attracted attention after generating around $20 million through highly Leveraged positions on Hyperliquid and GMX, including suspiciously well-timed trades ahead of major market announcements.

Separately, ZachXBT flagged a $400,000 exploit involving stolen Hypurr NFTs from compromised wallets on the Hyperliquid network.

He has also flagged and tracked fraudulent transactions from bad actors that have occurred on Hyperliquid’s platform, although it’s worth noting that his work is not limited to the platform.

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