Bloomberg: Hyperliquid is currently controlled by a small group of insiders and lacks formal regulatory oversight.

On October 17th, as reported by Bloomberg, Hyperliquid is currently under the control of a small group of insiders, which raises doubts about its degree of decentralization. For supporters such as Paradigm and Pantera Capital, it is both a bet on the future of digital finance and a reminder that the entire industry is still operating outside the formal regulatory system. Essentially, Hyperliquid is a minimalist exchange platform operated by Hyperliquid Labs based in Singapore with a team of approximately 15 people. According to industry practices, the website frontend blocks U.S. users, but anyone can trade on the blockchain that supports it. The absence of identity verification is precisely its appeal, echoing a rule observed in the early days: exchanges that grow rapidly using a similar model often quickly attract regulatory attention. If HLP is compared to an engine, then the validator nodes are the control room. Hyperliquid has about 24 validator nodes, while the Ethereum network has over a million. Critics contend that this leads to excessive centralization. The Hyper Foundation controls nearly two-thirds of the staked HYPE—its native token—thus exerting significant influence in validator node decisions and governance. Although in recent decisions, its nodes have chosen to abstain in order to respect community consensus. Kam Benbrik, the research lead at blockchain validator company Chorus One, said, "If you control more than two-thirds of the stake, you can essentially achieve control on the chain." Currently, Washington's relatively lenient attitude provides Hyperliquid with room for growth. The question is whether it can continue to operate outside the regulatory spotlight for a long time.