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DeFi's Crisis of Confidence: Fraudulent Audits and 95% Returns Consume $3.6 Million

DeFi's Crisis of Confidence: Fraudulent Audits and 95% Returns Consume $3.6 Million

Bitget-RWA2025/09/26 13:18
By:Coin World

- HyperVault, a Hyperliquid-based yield farming protocol, lost $3.6M in a rug pull as developers stole funds via Tornado Cash, leaving platforms inaccessible. - Users ignored red flags like fake audit claims (Spearbit, Pashov) and 95% HYPE token yields, despite verified firms denying involvement and Code4rena showing no audit history. - The scam mirrors CrediX Finance’s $4.5M exit, exposing DeFi risks from unverified audits and opaque teams, while Hyperliquid’s ecosystem faces trust erosion amid prior expl

DeFi's Crisis of Confidence: Fraudulent Audits and 95% Returns Consume $3.6 Million image 0

Developers behind HyperVault, a yield farming platform operating on the Hyperliquid blockchain, orchestrated a $3.6 million rug pull by draining user assets and vanishing, as reported by blockchain security group PeckShieldAlert. The stolen funds were transferred from Hyperliquid to

, swapped for ETH, and then moved through Tornado Cash—a privacy protocol frequently used to hide transaction histories. The exploit, which took place on September 26, 2025, resulted in HyperVault’s social channels, including its X (Twitter) and Discord, becoming unreachable, and the project’s website going offline. At the time, HyperVault’s total value locked (TVL) was $6.01 million, but the precise amount stolen is still uncertain Hyperliquid's HyperVault Project Rugged for $3.6M, Devs Disappear [ 1 ].

This scam followed a series of warning signs that users overlooked. On September 4, a community member named HypingBull questioned the legitimacy of HyperVault’s claimed security audits, pointing out that the developers had falsely referenced audit firms such as Spearbit, Pashov, and Code4rena. When contacted directly via Telegram, Pashov confirmed they had no involvement with the project, and Code4rena’s website showed no record of any audit for HyperVault. Despite these alerts, users continued to invest, lured by the platform’s advertised annual yields of up to 95% on HYPE tokens—returns far above standard DeFi rates HyperVault Triggers Rug Pull Alarm as $3.6M Disappears … [ 2 ].

The downfall of HyperVault exposes weaknesses within the larger Hyperliquid ecosystem. Although Hyperliquid itself is still running, this rug pull has put additional strain on its market standing, especially as it faces competition from ASTER DEX, which recently saw $13 billion in daily perpetual futures trading. Arthur Hayes, a well-known crypto figure, had previously liquidated his entire HYPE holding for $823,000, citing an upcoming $11.9 billion token unlock. HYPE is now trading at $35.50, down 23% over the past week, though Hayes is now polling his audience about potentially buying back in $3.6M Drained From Hyperliquid DeFi Platform Hypervault in … [ 3 ].

This event highlights ongoing dangers in DeFi, where unregulated projects often lure investors with promises of outsized returns. HyperVault’s use of Tornado Cash and its sudden disappearance echo tactics seen in other frauds, such as the $4.5 million CrediX Finance exit scam in August 2025. Experts point out that projects lacking transparent audits and clear team identities are especially vulnerable to abuse. In HyperVault’s case, the absence of team disclosures and verifiable audit reports left users at risk DeFi protocol Hypervault vanishes after $3.6 million suspected … [ 4 ].

Hyperliquid’s infrastructure has encountered previous issues, including a March 2025 exploit where a trader manipulated the JELLY token, resulting in a $13.5 million loss. Technical setbacks, such as a 37-minute trading halt in July 2025, have also cast doubt on the platform’s dependability. While Hyperliquid’s core systems remain intact after HyperVault’s failure, the incident may undermine confidence in its ecosystem, particularly for third-party protocols that lack robust security practices Hyperliquid’s HyperVault Project Rugged for $3.6M, Devs Disappear [ 5 ].

For those impacted, the chances of recovering funds are slim. PeckShieldAlert noted that the use of Tornado Cash has made tracing the $3.6 million nearly impossible. Community members have urged HyperVault users to revoke wallet permissions and avoid engaging with unaudited contracts. This episode serves as a warning for DeFi investors, emphasizing the need for thorough research before trusting projects that promise unusually high returns What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 6 ].

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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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