In brief
- $3.6 million has been sent from yield farming platform Hypervault Finance to crypto mixer Tornado Cash in an “abnormal withdrawal.”
- The funds were bridged to the Ethereum chain before being sent to Tornado Cash, according to reports from blockchain security firms.
- Hypervault’s social media and website remain inaccessible following the incident.
Some $3.6 million has been sent from Hyperliquid yield farming platform Hypervault Finance to crypto mixer Tornado Cash in an “abnormal withdrawal.”
Security firm PeckShield noted the transfer, in which $3.6 million worth of cryptocurrencies were bridged to the Ethereum chain before being transferred to Tornado Cash. CertiK, a Web3 security service provider, disclosed the specific wallets linked to the suspected withdrawals.
Hypervault Finance’s website is inaccessible following the incident, while the project’s Discord, X, and other social media profiles have also been deleted.
The project rose to popularity among yield farming investors for featuring special vaults that promised an annualized yield of upwards of 76% on stablecoins and up to 95% for HYPE liquidity.
The incident comes after a recent announcement from the project that it had surpassed $5 million in total value locked earlier this week.
“Crossing this threshold signals that Hypervault is becoming a core layer of liquidity aggregation within the HyperEVM ecosystem,” the tweet noted.
The compromised platform had $6.01 million in total value locked as of Thursday, according to DefiLlama, which has added a “rug pull” notice for the project, referring to a scheme where founders siphon user funds and abandon the project.
The Hyperliquid ecosystem
The incident brings scrutiny to the broader Hyperliquid ecosystem, on which Hypervault was built.
Hyperliquid is a decentralized exchange specializing in perpetual futures trading, built atop its own dedicated layer-1 network. Per DeFiLlama, it commands some $2 billion in total value locked. In recent weeks, it has drawn attention from major players including traditional finance giants like VanEck and StateStreet after launching a proposal for USDH, a “Hyperliquid-aligned” stablecoin.
Users of Myriad, a prediction market launched by Decrypt’s parent company DASTAN, turned bearish on Hyperliquid’s HYPE token during this week’s crypto market downturn, placing an 87% chance on HYPE dropping to $39 rather than pumping to $69. At time of publication, HYPE is trading at $41.61, up 0.9% on the day according to CoinGecko data.
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