Earlier today, on 26th Sept, Crypto Investigator PeckShield has raised concerns about a rugpull potentially related to the decentralized finance app HyperVault after identifying suspicious fund flows amounting to approximately $3.6 million.
The dubious funds transferred on the Ethereum blockchain began with funds being bridged between Hyperliquid, and immediately after, the funds were swapped for Ethereum (ETH).
Also, nearly simultaneously, 752 ETH were moved to Tornado Cash, a crypto mixer well known for its use in laundering crypto and withdrawing profits from exploits.
The transactions have raised immediate concerns among investors and security experts.
Also Read: Trump Family Backed WLFI Blocks 2 Crypto Hacker Attacks From Compromised End Users, Here’s All
Coordinated Fund Movement
Blockchain data indicates that the transactions were executed in a series of 10 deposits into Tornado Cash, ranging from as little as 1 ETH to multiple transfers of up to 100 ETH each.
However, given that the funds were transferred in such a bulk manner, it signals a desire to hide the source of the funds, which makes those transactions relatively harder to track.
Analysts have said that these types of coordinated movements are a normal part of rugpull or exit scam tactics used by developers or malicious people who take community funds and then conceal their trail using privacy-enhancing protocols.
Also Read: THORChain Co-Founder Loses $1.3 Million in “Conference Call Scam” By North Korean Hackers
Tornado Cash Use Fuels Rugpull Speculation
Routing the funds through Tornado Cash has only amplified suspicions of fraudulent behavior.
Tornado Cash is already facing significant global scrutiny for being linked to laundering funds from other high-profile exploits, which obviously raises alarm bells in this instance.
HyperVault has not made an official statement addressing the incident, but the sequence of events draws attention to the increasing vulnerabilities in decentralized finance platforms, particularly those that leverage a bridging protocol.
PeckShield has voiced concerns about a rugpull possibly associated with the decentralized finance app HyperVault after the platform tracked suspicious fund flows totaling nearly $3.6 million.
Also Read: Hackers Hijack NPM Packages, Millions Of Crypto Wallets At Risk, Warns Ledger CTO
Hacks Continue to Plague the Crypto Space
This suspected exploit occurs within a string of high-profile security breaches in the crypto industry.
On September 9th, SwissBorg lost $41 million in SOL after attackers exploited a vulnerability in Kiln’s API, which required the exchange to draw on its treasury reserves to cover the loss, according to UnoCrypto.
A few days later, on September 12th, we reported that hackers stole more than $3 million from Safe Wallet users through a fake contract scam that looked like a legitimate wallet.
These events signal a troubling uptick in exploits, rug pulls, and scams across the cryptocurrency sector, leading to renewed attention on more secure practices, better auditing habits, and increased user awareness to limit risk in decentralized finance.
Also Read: Crypto Hackers Earn $20k Monthly From AI Voice Phishing Scam