Reports indicate that Hypervault, a project part of the Hyperliquid ecosystem, has disappeared overnight with over $3.6 million in user funds. Peckshield highlighted that most of these funds were bridged to Ethereum, and then 752 ETH was sent to Tornado Cash.
Hypervault Goes Dark, Users Register $3.6M in Losses
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Hypervault Rugpulls, Leaves Users Facing Losses for Over $3.6 Million
Hypervault, a Hyperliquid-based decentralized finance project, has disappeared overnight, resulting in losses of nearly $3.6 million. Peckshield, a blockchain security firm, alerted about the issue, explaining that it had detected an “abnormal withdrawal” from the project’s vaults.
Peckshield also reported that the funds, composed of various tokens, were bridged from Hyperliquid to Ethereum, and then 752 ETH was deposited into Tornado Cash, a privacy-first protocol.
Before it happened, X user HypingBull had warned about potential problems in the protocol, which was still in the stages of having its operation audited by third parties. HypingBull reached out to protocol devs to inquire about the state of these processes, and was told that audits were in progress. “Audits are pending via Spearbit, Pashov, and Code4rena; expected turnaround for the first comprehensive audit is mid-September,” devs allegedly stated.
Nonetheless, when contacting one of these companies, it denied knowledge of any audits linked to the project. At the time, when the protocol still had only $700,000 in value locked, HypingBull recommended withdrawing all the funds until further clarification.
X user Doola claims that he had $350,000 invested in the platform, almost 10% of all funds withdrawn. “Will take a break for a while to take all this in and rethink my process going forward,” he stated.
The project front-end is unavailable, and its social media accounts, including X and Discord, have been deleted. HypingBull recommended revoking permissions from the wallets used to connect to Hypervault’s front-end.
According to Defillama, the project registered over $6 million in total value locked (TVL), as users were enticed by the large rewards offered, commonly reaching 80% annual percentage yields ( APY).
Hypervault’s demise constitutes one of the first major rug pulls in the HyperEVM ecosystem, and the affected are calling authorities and blockchain sleuths to take action.
