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DeFi’s Trust Experiment Falters After $3.6 Million Drained Through Tornado Cash Mixer

DeFi’s Trust Experiment Falters After $3.6 Million Drained Through Tornado Cash Mixer

Bitget-RWA2025/09/26 10:30
By:Coin World

- DeFi protocol HyperVault allegedly siphoned $3.6M via Tornado Cash mixer, with 752 ETH routed through privacy tools after draining liquidity pools. - Project's sudden social media shutdown and unverified audit claims raised red flags, as funds were moved using rug-pull tactics from Hyperliquid to Ethereum. - Incident highlights risks of unaudited DeFi protocols, with experts urging stricter standards after HyperVault's $5.8M TVL collapse exposed ecosystem vulnerabilities. - Community warns of irreversibl

DeFi’s Trust Experiment Falters After $3.6 Million Drained Through Tornado Cash Mixer image 0

DeFi platform HyperVault is under investigation after roughly $3.6 million vanished from its liquidity pools. Blockchain security company PeckShield flagged suspicious activity, noting that 752 ETH was transferred to Tornado Cash, a privacy tool for mixing transactions What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. The project's social media accounts, including X (Twitter) and Discord, were suddenly taken offline, fueling suspicions of a planned exit scam What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. The stolen assets were initially bridged from Hyperliquid to

, swapped for ETH, and then funneled through Tornado Cash—a sequence often seen in rug pull schemes What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ].

HyperVault, which aimed to optimize yields on the Hyperliquid blockchain, reportedly had a total value locked (TVL) of about $5.8 million when the incident occurred What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. Some observers have questioned the accuracy of these TVL figures, hinting at possible exaggeration. The project promoted itself as a multichain yield aggregator and a digital vault for enterprises, leveraging its connection to the Hyperliquid ecosystem to attract participants What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. However, community members like HypingBull had previously pointed out inconsistencies in HyperVault’s audit claims. Although developers mentioned ongoing audits with firms such as Spearbit and Code4rena, at least two of these auditors denied any involvement What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ].

This event has ignited discussions about the dangers of unaudited DeFi projects within the Hyperliquid ecosystem. While Hyperliquid itself—a high-speed Layer-1 blockchain for trading—has not been directly impacted, the HyperVault controversy may undermine confidence in the overall network What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. Members of the community are advising those affected to revoke wallet permissions associated with HyperVault, stressing that the lost assets cannot be recovered due to the blockchain’s

properties What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. Analysts emphasize that incidents like this highlight the necessity for thorough vetting in DeFi, especially for projects lacking clear audits or locked liquidity What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ].

The aftermath exposes ongoing weaknesses in decentralized finance, where rug pulls and liquidity thefts continue to be significant risks. PeckShield’s warning prompted swift reactions on social media, with many calling this one of the largest rug pulls on HyperEVM What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. The absence of regulatory controls in DeFi makes these threats worse, as developers can exploit vulnerabilities in smart contracts to misappropriate funds without facing consequences What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ]. Hyperliquid has yet to issue a statement, and neither its leadership nor ecosystem partners have commented publicly What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 1 ].

This case joins a series of DeFi breaches in 2025, such as the

exploit and the Falcon Finance airdrop incident, which also resulted in a $3.6 million loss. As the sector evolves, industry experts are calling for more rigorous audit practices and better user awareness to reduce these dangers.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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