$3.6 Million Withdrawn from Hypervault Finance to Tornado Cash
Recently, $3.6 million has been transferred from Hyperliquid’s yield farming platform Hypervault Finance to the crypto mixer Tornado Cash in what is being classified as an “abnormal withdrawal.”
Security firm PeckShield reported this transfer, noting that cryptocurrencies worth $3.6 million were bridged to the Ethereum chain prior to being sent to Tornado Cash. CertiK, a Web3 security service, identified the specific wallets tied to the suspected withdrawals.
Status of Hypervault Finance
Following this incident, Hypervault Finance’s website is currently inaccessible, and the project has also deleted its Discord, X, and other social media profiles.
Hypervault Finance had gained traction among yield farming investors by offering exclusive vaults that promised annualized yields exceeding 76% on stablecoins and up to 95% for HYPE liquidity.
This incident occurred shortly after the project announced that it had surpassed $5 million in total value locked earlier this week. A tweet from the project stated, “Crossing this threshold signals that Hypervault is becoming a core layer of liquidity aggregation within the HyperEVM ecosystem.”
According to DefiLlama, the compromised platform had $6.01 million in total value locked as of Thursday and has since been marked with a “rug pull” warning, which indicates a scheme where founders take user funds and abandon the project.
The incident has also raised concerns regarding the broader Hyperliquid ecosystem, on which Hypervault was established. Hyperliquid is a decentralized exchange that specializes in perpetual futures trading, built on its dedicated layer-1 network. DefiLlama reports that it has a total value locked of approximately $2 billion. Recently, it attracted the attention of significant players, including traditional finance firms like VanEck and StateStreet, after proposing the USDH, a “Hyperliquid-aligned” stablecoin.
Additionally, users of Myriad, a prediction market launched by DASTAN became bearish on Hyperliquid’s HYPE token amid this week’s cryptocurrency market downturn. They placed an 87% probability on HYPE falling to $39 instead of rising to $69. At the time of this publication, HYPE is trading at $41.61, reflecting a 0.9% increase on the day according to CoinGecko data.
