Hyperliquid has the worst custody setup of any crypto exchange.
They hold 100% of the $3.5B in deposits in a single hot wallet, secured by an opaque 3/4 multisig system, and don’t wait for deposit finality.
All deposits and withdrawals are processed instantly, which implies there are zero additional safeguards.
Custody-wise, HL combines the worst of both worlds: a fully trusted system with all funds online.
Not waiting for finality means they assume
sequencer honesty. If the Arbitrum sequencer is dishonest, someone could send fake USDC to the HL address and get credited immediately. They skip finality-check (something literally every CEX waits for)
I’d love to deploy size on Hyperliquid, but the security guarantees just aren’t there.
Going to bed relying on a 3/4 multisig is a bit unnerving.
Hyperliquid
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