Hyperliquid’s HyperVault Project Rugged for $3.6M, Devs Disappear

Core Insights - HyperVault developers executed a rug pull, draining approximately $3.6 million in user funds before disappearing and deleting all social media accounts [1] - The stolen funds were laundered through Tornado Cash, with 752 ETH deposited to obscure transaction trails [2] - Despite early warnings about suspicious audit claims, many users continued to deposit funds due to high advertised yields [5][6] Company and Project Details - HyperVault claimed pending audits from firms Spearbit, Pashov, and Code4rena, but investigations revealed no involvement from these firms [3][5] - The rug pull adds pressure to Hyperliquid's ecosystem, as the HYPE token faces competition from ASTER DEX, which processed over $13 billion in daily perpetual futures volume [3] - Arthur Hayes previously exited his entire HYPE position for a profit of $823,000, citing upcoming token unlocks worth $11.9 billion starting November 29 [4] Community Response and Warnings - A community member raised concerns about HyperVault's security audits on September 4, urging immediate withdrawals, but these warnings were ignored [2][5] - Prominent supporters of HYPE continued to promote the protocol until just days before the rug pull, despite the red flags [6] - The project lacked transparency regarding team identities and failed to provide legitimate audit documentation [7]