Binance Founder CZ Praises Hyperliquid But Issues Grim Warning Amid HYPE All-Time High

Despite admiring Hyperliquid, Binance founder Changpeng Zhao (CZ) hopes the decentralized exchange invests in good lawyers amid fears of future compliance issues. Meanwhile, HYPE has surged to set a new all-time high alongside bullish ETF inflows, braving the broader crypto market decline.

Hyperliquid is awesome but get good lawyers, says CZ

In an interview on the Galaxy Brains podcast, CZ heaped praise on Hyperliquid, describing the project as “awesome.” CZ noted that Hyperliquid has carved a niche for itself in the DEX space while downplaying rumours that Binance intends to compete with the project.

“I think the Hyperliquid invention is actually awesome,” said CZ. “They occupy a niche that Binance cannot compete in.”

CZ disclosed that his previous brush with law enforcement agencies makes the DEX ecosystem unattractive for Binance. The Binance founder urged Hyperliquid to retain “good lawyers” given their heightened activity without typical Know Your Customer (KYC) requirements.

“They claim they’re decentralized. I would never do what they do, given what I’ve experienced,” said CZ. “I assume they have good lawyers.”

Back in 2023, CZ pled guilty to violating US money laundering laws under the Bank Secrecy Act for operating Binance with lax KYC rules. CZ was sentenced to four months in prison, with Binance paying a record $4 billion in penalties to US authorities. 

However, the Binance founder received a presidential pardon in 2025, but the run-in with US authorities has seen the exchange tighten its KYC and AML requirements.

Since its launch, Hyperliquid has gone from a niche perpetuals DEX to one of the largest on-chain trading venues in the cryptoverse. 

By the end of 2025, the protocol had processed nearly $3 trillion in trading volume while onboarding over 1.4 million users. 

In terms of compliance, Hyperliquid geoblocks US IP addresses since it does not operate as a CFTC-regulated US derivatives exchange. However, regulators have issued calls for greater scrutiny of Hyperliquid amid soaring metrics.

HYPE price surges to new peak

CZ’s latest comments come amid the HYPE price surging to an all-time high of $76.85 in a meteoric rally. The Hyperliquid native token soared by a staggering 25% over the last week, braving predictions of a short-term price decline.

Several reasons are behind HYPE’s rally, with the token still reeling from the success of clearing $1.4 billion in tokenized SpaceX stock on the historic IPO event. 

Meanwhile, Bybit, Bitget, and Binance ditched their tokenized SpaceX products after a sputtering start.Furthermore, HYPE spot ETFs have recorded steady inflows, reaching nearly $190 million by mid-June, contributing to the positive sentiment around the native token. 

Last week, Citrini Research issued a glowing prediction for HYPE, underscoring its massive buyback program and strong cash flow.

Meanwhile, the Aster decentralized exchange, which has deep and strategic ties to Binance, is having its surge. Following a new tokenomics proposal, the ASTER token has surged by 15.48% in the last 24 hours to trade at $0.75.