Kyle Samani Criticizes Hyperliquid Over Closed-Source Operations and Alleged Misconduct

Former Multicoin co-founder’s industry exit is marked by sharp criticism of blockchain projects, while peers defend the sector’s long-term potential.

HYPE

Summary

Kyle Samani, former co-founder of Multicoin Capital and current chairman of Forward Industries, has left the cryptocurrency industry, publicly criticizing blockchain technology and projects such as Hyperliquid. His earlier accusations against Hyperliquid included claims that its founders fled their home country, engaged in enabling illicit activities, and operated with closed-source, permissioned code. Samani’s recent remarks have sparked backlash, with industry figures including Tushar Jain, Haseeb Qureshi, and Chris Dixon defending blockchain’s long-term value and potential.

Terms & Concepts
  • Closed-source code: Software whose source code is not shared publicly, restricting transparency and external review.
  • Permissioned blockchain: A blockchain network where access and participation require authorization, unlike public blockchains.
  • DeFi: Decentralized Finance – blockchain-based financial services without traditional intermediaries.