Hypervault Rug Pull? PeckShield Flags Millions Lost as Project Goes Darkug Pull

Blockchain security firms are once again raising red flags in the DeFi sector. This time, Hypervault, a decentralized finance protocol that promised automated yield strategies, has gone offline following suspicious fund movements totaling $3.6 million.

PeckShield flags Suspicious transfers

On-chain analysts at PeckShield were among the first to sound the alarm, identifying outflows from Hypervault that were bridged from Hyperliquid to Ethereum.

The funds were then converted into ETH before roughly 752 ETH (close to $3 million) was sent to Tornado Cash, a crypto-mixing service often linked to obfuscating stolen assets.

The sequence of events, large withdrawals, immediate swaps, and deposits into a privacy mixer, mirrors behavior seen in previous DeFi “rug pulls.” In such cases, project operators abruptly drain liquidity pools or user deposits and disappear, leaving investors with little recourse.

Adding to concerns, Hypervault’s official website is now inaccessible, and its account on X has been deleted. These moves further fuel speculation that the project’s operators have abandoned the platform altogether.

A promising protocol turned silent

Hypervault had marketed itself as a protocol offering “unmanaged” auto-compounding vaults and strategy adapters. These were designed to deploy user deposits into external lending and liquidity venues via modular strategies on HyperEVM.

The platform highlighted features such as keeper-bot harvests and flexible routing across DeFi ecosystems, promising users efficient yield generation without active management.

However, the sudden disappearance of its communication channels and the lack of clarity on fund recovery cast doubt on the project’s future. As of now, neither the team behind Hypervault nor any associated developers have issued a public statement.

Other Related Read/Listens

• Bitwise Seeks Approval for Hyperliquid ETF, First of Its Kind in the U.S
• SEC and FINRA Investigate Stock Movements Tied to Crypto Treasury Disclosures
• SEC Chair Reveals Crypto Firms May Get a Regulatory Shortcut by Year-End, Here’s What It Means