CZ Praises Hyperliquid But Says He Would Never Run It Himself

Overheated

The CZ Hyperliquid remarks come from an upcoming Galaxy Brains episode. Host Alex Thorn, Head of Firmwide Research at Galaxy, posted the clip on June 16, 2026. The full episode has not been released yet.

What CZ Said About Hyperliquid

In the clip, CZ kept his praise direct and specific. “I think the Hyperliquid invention is actually awesome,” he said.

He then drew a sharp line between Hyperliquid and his old company. According to CZ, the protocol occupies “a niche that Binance.. cannot compete” in. He pointed to two reasons. It does not require KYC, and it claims to be decentralized.

CZ also added a personal caveat. “I would never do what they do, given what I’ve experienced,” he said. He then closed with a joke that quickly went viral. “I assume they have good lawyers.”

Thorn shared the video directly, which supports the clip’s authenticity. Cointelegraph and Wu Blockchain both amplified it within hours. So far, neither Hyperliquid nor founder Jeff Yan has responded publicly.

The Niche Binance Cannot Compete In

CZ’s point lands on a real structural divide. Binance operates as a regulated, centralized exchange. As a result, it must enforce KYC, anti-money-laundering checks, and sanctions screening across most markets.

Hyperliquid takes a different route. It runs as an on-chain perpetuals DEX on its own Layer 1, the Hyperliquid L1, with HyperEVM smart contract support. Traders connect a wallet and trade without identity checks.

Because of that design, Hyperliquid reaches users a compliant exchange cannot serve directly. CZ framed this as a niche, not a threat. In his view, his platform simply cannot enter that space.

The framing still matters competitively. Perps are a core revenue driver for Binance. Yet a no-KYC venue can capture flow that regulated rivals must turn away. That is the gap CZ described.

CZ Hyperliquid Praise Explained: The Good Lawyers Line

The “good lawyers” joke carries weight because of CZ’s own history. In November 2023, Binance reached a settlement with the U.S. Department of Justice. The deal was worth more than $4.3 billion.

CZ pleaded guilty to one count of violating the Bank Secrecy Act. The charge involved failing to maintain an effective anti-money-laundering program. He stepped down as CEO and later served roughly four months in prison.

That context shapes how people read the line. Some saw a light compliment about regulatory navigation. Others read a veiled warning, given how hard regulators came down on Binance for similar compliance gaps.

Hyperliquid’s Decentralization Still Faces Questions

CZ said Hyperliquid “claims” to be decentralized, and that wording matters. The protocol markets itself as permissionless and non-custodial. Still, its decentralization has been tested in practice.

In March 2025, the JELLY incident put that claim under a microscope. A market manipulation attempt on JELLY perps caused roughly $13 million in impact on Hyperliquid’s HLP vault. Validators then intervened, delisted the market, and settled positions.

Critics argued that the intervention showed permissioned control over a supposedly decentralized system. Supporters countered that the validators protected user funds. The debate over how decentralized Hyperliquid really is remains open.

How Crypto X Reacted to the CZ Hyperliquid Clip

The clip spread fast across X, and the mood was mostly light. Many users latched onto the “good lawyers” line as a meme. Others read it as CZ quietly tipping his hat to a rival’s edge.

Sentiment toward Hyperliquid leaned bullish. Retail accounts framed the praise as validation from the industry’s most famous exchange builder. Some pro voices pushed back, noting the unresolved regulatory questions around no-KYC perps.

The split was telling. Retail saw a compliment, while compliance-minded observers saw a caution. Both readings can be true at once, and the clip leaves room for each.

HYPE Price and the Market Backdrop

The comments landed during a strong run for Hyperliquid’s native token. HYPE hit all-time highs near $76 to $77 in mid-June. Reports cited a surge to about $76.90 on June 16, according to CoinMarketCap data.

On-chain activity stayed heavy as well. Hyperliquid L1 TVL sat around $1.64 billion in recent DefiLlama data. Perps volume often ran into the billions over 24 hours.

No measurable price move has been tied directly to the CZ Hyperliquid clip. The praise simply arrived in the same week as the token’s record highs. None of this is financial advice, and traders should do their own research.

What Comes Next for CZ and Hyperliquid

The full Galaxy Brains episode could add context that a short clip cannot. Until it drops, CZ’s exact intent stays open to interpretation.

For now, the takeaway is clear. The most scrutinized founder in centralized exchange history just praised a no-KYC rival. He then drew a hard line he says he will not cross. Whether Hyperliquid responds, and whether regulators take note, will shape the next chapter.