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DeFi's Lack of Thorough Audits Enables Hypervault to Drain $3.6 Million in Exit Fraud

DeFi's Lack of Thorough Audits Enables Hypervault to Drain $3.6 Million in Exit Fraud

Bitget-RWA2025/09/28 03:16
By:Coin World

- DeFi platform Hypervault siphoned $3.6M via Tornado Cash, with funds traced from Hyperliquid to Ethereum before vanishing. - Project disappeared after falsely claiming audits by third parties, leaving 1,100 depositors with $5.8M locked value. - Incident mirrors 2025 CrediX Finance exit scam and highlights DeFi's audit gaps, as rug pulls surged 6,499% year-on-year. - Privacy tools like Tornado Cash enable asset concealment, complicating regulatory tracking and investor recourse.

DeFi's Lack of Thorough Audits Enables Hypervault to Drain $3.6 Million in Exit Fraud image 0

Decentralized finance platform Hypervault has come under fire after blockchain security company PeckShield flagged suspicious withdrawals totaling $3.6 million from user accounts, prompting fears of a potential rug pull. The assets were first transferred from Hyperliquid to

, swapped into ETH, and then sent through Tornado Cash, a privacy-centric crypto mixer frequently linked to exit scams DeFi protocol Hypervault vanishes after $3.6 million suspected … [ 1 ]. Hypervault’s X profile was removed and its website became unreachable, further fueling doubts about the project’s authenticity Hypervault Deletes X Account Amid Alleged $3.6M Rug Pull [ 2 ]. The platform had advertised itself as an “unmanaged” auto-compounding vault, touting high returns for stablecoins and HYPE liquidity pools Hyperliquid DeFi Project Hypervault Accused of Rug Pull As … [ 3 ].

The suspected exit scam unfolded as 752 ETH—worth close to $3 million—was funneled through Tornado Cash, making it nearly impossible to trace the stolen funds What Should HyperVault Users Do After $3.6 Million Rug Pull? [ 4 ]. This method is consistent with previous exit scams, where project operators take advantage of DeFi’s lack of oversight to drain assets and disappear. PeckShield’s investigation revealed that the funds originated from Hyperliquid, a high-speed layer-1 blockchain, before being moved to Ethereum, a tactic commonly seen in DeFi fraud cases Hypervault Vanishes With $3.6M — DeFi Rug Pull Exposed [ 5 ].

Warning signs appeared weeks earlier when community member HypingBull questioned Hypervault’s claims of pending audits. The project had referenced upcoming audits by Spearbit, Pashov, and Code4rena, but direct contact with these firms confirmed no such involvement DeFi Rug Pulls: How Hypervault’s $3.6M Scam Exposed Critical … [ 6 ]. This inconsistency, along with the removal of social media and silence from the team, heightened suspicions that the exit was preplanned. At the time of the event, Hypervault managed about $5.8 million in total value locked (TVL) from over 1,100 depositors Hyperliquid’s HyperVault Project Rugged for $3.6M, Devs Disappear [ 7 ].

This incident has spotlighted weaknesses in the Hyperliquid ecosystem, which has previously suffered from exploits, including a $13.5 million loss in March 2025 due to token manipulation HyperLiquid XPL: Revealing a Coordinated Market Anomaly [ 8 ]. Critics argue that unaudited third-party projects like Hypervault erode confidence in otherwise solid infrastructure. The disappearance of Hypervault mirrors other DeFi rug pulls, such as the $4.5 million CrediX Finance scam in August 2025 Hyperliquid’s HyperVault Project Rugged for $3.6M, Devs Disappear [ 9 ]. These events highlight the dangers of investing in projects with unclear governance and unproven security.

Experts point out that the Hypervault case illustrates broader issues in DeFi, where promises of high returns often conceal fraudulent schemes. The use of privacy tools like Tornado Cash to hide asset flows demonstrates the challenges regulators face in tracking and recovering stolen crypto DeFi Rug Pulls: How Hypervault’s $3.6M Scam Exposed Critical … [ 10 ]. Although both PeckShield and DeFi Llama have verified the rug pull, Hypervault’s leadership has yet to release any official statements or regulatory filings, leaving affected users without support.

As DeFi platforms continue to lure retail investors with bold marketing and unrealistic yield promises, the importance of transparency and independent audits becomes ever more apparent. The Hypervault episode stands as a warning for investors to conduct thorough research, verify audit claims, and steer clear of projects with centralized control over funds. With rug pulls causing nearly $6 billion in losses in 2025—a staggering 6,499% rise from 2024—industry voices are calling for stronger governance to reduce such risks DeFi Rug Pulls: How Hypervault’s $3.6M Scam Exposed Critical … [ 11 ].

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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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