Hyperliquid-Based Project Faces $3.6 Million Controversy Amid Rug Pull Fears
The Hyperliquid ecosystem is in the spotlight after one of its projects, HyperVault, was accused of rug-pulling users for approximately $3.6 million.
Blockchain security firm PeckShield flagged unusual transactions on Friday, sparking alarm on social media.
HyperVault Social Channels Wiped Amid Rug Pull SuspicionsAccording to PeckShield, the suspicious activity began with a large withdrawal from HyperVault, a yield optimization protocol built on Hyperliquid.
The assets were bridged out of the network to Ethereum, converted into ETH, and eventually funneled into Tornado Cash, a popular coin mixer often used to obscure fund flows.
In total, 752 ETHwere deposited into Tornado Cash, raising strong suspicion of a deliberate exit scam.
#PeckShieldAlert #Rugpull? We have detected an abnormal withdrawal of ~$3.6M worth of cryptos from @hypervaultfi.
The funds were bridged from #Hyperliquid to #Ethereum, swapped into $ETH, and then 752 $ETH was deposited into #TornadoCash. pic.twitter.com/mHQLPYXvzS
The fallout escalated quickly when HyperVault’s social media accounts were deactivated, including its X (Twitter) profile and Discord server.
HyperVault X Account Deactivated. Source: Twitter
HypingBull, a Hyperliquid community member, views this as confirmation after warning about the protocol weeks earlier.
On September 4, they highlighted irregularities in the project’s audit claims, noting that while developers said audits were underway, at least two firms denied any involvement.
MAX REPOST