Kyle Samani, the recently deceased co-founder of Multicoin Capital, has launched a fierce attack on the high-flying hyperliquid decentralized exchange (DEX), calling it a systemic risk despite his former company’s reported aggressive accumulation of its underlying HYPE token.
Key points to remember:
- Kyle Samani publicly criticized Hyperliquid’s closed-source model days after leaving Multicoin Capital.
- On-chain analysts report that wallets linked to Multicoin hold over $40 million in HYPE tokens.
- Hyperliquid recently surpassed Coinbase in volume after its HIP-4 prediction market launch.
Why is Samani targeting hyperliquid now?
Samani left Multicoin Capital on February 5, 2026, ending a decade-long tenure.
Three days later, on February 8, he broke his silence to target Hyperliquid, the world’s largest DEX. His harsh criticism highlights a deep ideological divide in the industry, with Kyle defending permissionless open source protocols, which he says is not Hyperliquid.
Samani also implies criminal or untoward things about the exchange, facilitating “crime and terror,” although he falsely characterizes Bay Area-born Hyperliquid founder Jeff Wan as an immigrant.
This clash of philosophies comes at a time when capital flows ignore ideology; investors are pouring $258 million into crypto startups, regardless of technical decentralization, in search of the massive returns that high-performance applications are currently generating.
With a dizzying plethora of features that give it some of the utility of a CEX, Hyperliquid has surged in recent months by prioritizing vertical integration and performance over open source transparency.
“Walled garden” or market leader?
Samani didn’t hold back, saying hyperliquid “is, in many ways, everything that’s wrong with crypto.”
His critique specifically targets the project’s closed-source architecture and set of allowed validators.
He claims that this “walled garden” approach, combined with the founder’s choice to establish itself in Singapore’s non-extradition jurisdiction, creates unacceptable risks of seizure.
Samani also alleged that the opacity of the platform acts as a shield against possible illicit financial activities.
This rhetoric builds on growing fears about unchecked crypto platforms, a narrative highlighted recently when two high school students were charged in an Arizona home invasion targeting $66 million in crypto, reminding the market of the darker side of unprecedented anonymity.
Despite Samani’s reservations, the market continues to vote with his wallet. Hyperliquid recently overtook Coinbase in terms of trading volume, doubling the centralized exchange’s figures in early 2026.
With a market capitalization above $7 billion, the HYPE token remains one of the top 20 largest cryptocurrencies and among the best cryptocurrencies to diversify with. This is reminiscent of how the Post-Quantum QONE token sold out in 24 hours, proving that traders value cutting-edge technology stories more than social media feuds.
The contradiction of 40 million dollars
The timing of these comments also fueled speculation regarding internal disagreements at Multicoin.
A wallet widely believed to be linked to Multicoin was recently spotted accumulating over $40 million in HYPE tokens. This creates a glaring contradiction: The company Samani founded is betting heavily on the very asset that he believes could ruin the industry.
Samani’s response to the company’s purchasing behavior was blunt: “I don’t work at multicoin. » Since his departure, he has declared his intention to move into other technologies, but announced that he would remain president of Forward Industries, a treasury of Solana.
Samani’s clash with Hyperliquid highlights the deep divisions that still plague crypto as the industry awaits regulation by US lawmakers.
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