Loopscale, a Solana-based DeFi platform, reported a major security breach that impacted its USDC and SOL vaults, resulting in a loss of approximately $5.8 million, or about 12% of its total value.
This exploit occurred just two weeks after the platform’s official launch.
Mary Gooneratne, co-founder of Loopscale, confirmed that the attack was carried out by exploiting under-collateralised loans.
Investigations traced the vulnerability to a flaw within the platform’s RateX-based collateral pricing system, where attackers manipulated RateX PT token pricing functions.
This exploitation led to the theft of 1,200 SOL and $5.7 million in USDC.
Notably, Loopscale emphasized that the RateX protocol itself was not compromised.
In response to the breach, Loopscale temporarily suspended all markets to assess the extent of the damage.
After a brief downtime, the protocol resumed certain functions, allowing loan repayments, collateral top-ups, and the closing of positions, while vault withdrawals remained restricted.
The breach primarily impacted Loopscale’s USDC and SOL vault depositors, though borrowers and loopers were not directly affected.
Loopscale has committed to providing transparency on the number of users impacted, outlining how vault holders can access their funds, and releasing a detailed technical post-mortem.
Earlier this year, OShield, which audited the protocol in January and February, flagged several vulnerabilities, although these were later addressed according to Loopscale’s FAQ.
An ongoing audit by Sec3 is currently assessing the protocol’s security.
In an effort to recover the stolen funds, Loopscale extended a 10% bounty offer to the attacker and proposed a whitehat agreement.
The platform requested the return of 90% of the stolen assets, warning that legal action will follow if the attacker fails to respond by 28 April.
Loopscale is collaborating with security firms and law enforcement agencies to address the breach.
Loopscale added:
“We agree to allow you to retain a bounty of 10% of the funds (3,947 SOL) and release you from any and all liability regarding the attack.”
As of the latest update, the attacker has shown a willingness to return the stolen funds in exchange for the offered bounty.
By Q1 2025, over $1.6 billion had been lost in DeFi attacks, with platforms like zkLend, Ionic Money, Cardex, Four.Meme, Cashverse, BankX, and GoldReserve NFT among those impacted.
February alone saw more than $1.53 billion drained in nine separate incidents, marking a 20% increase from January and an 18-fold surge from February 2024.
High-profile breaches, such as Bybit’s $1.46 billion hack in February, have shaken industry confidence.
This alarming trend highlights growing concerns over the security vulnerabilities of DeFi platforms in 2025.
Tim Haldorsson, founder of Lunar Strategy, raised the critical question of whether the potential returns from DeFi justify the escalating risks of exploitation.
"Cassandra" is a horror series about a smart home AI that evolves from a helpful assistant into a dangerous, controlling force. As the AI becomes obsessed with the family, it manipulates events to maintain its control, leaving viewers questioning the true potential of AI.
WeatherlyAs TikTok faces a potential US ban or forced sale over security concerns, Tron founder Justin Sun has expressed interest in acquiring the platform. Meanwhile, the Chinese government is considering selling TikTok’s US operations to Elon Musk. What will be TikTok’s fate?
CatherineMicrosoft CEO Satya Nadella met with Donald Trump and Elon Musk to discuss AI, cybersecurity, and Microsoft’s $80 billion global AI investment, with over $50 billion dedicated to US jobs.
KikyoBitMEX was fined $100 million for failing to meet US anti-money laundering and Know Your Customer requirements. Despite previous legal battles, the exchange is focusing on improving its internal controls and remaining competitive in the market.
WeatherlyScam Sniffer warned of Telegram malware scams last December. Since then, cybercriminals have adapted, using more sophisticated tactics to target more victims.
CatherineThai Prime Minister Paetongtarn Shinawatra nearly fell victim to a scam where fraudsters used AI to impersonate a foreign leader and solicit a donation. After recognising the suspicious bank details and missed call, she alerted authorities, who have since launched an investigation into the scam.
JoyA survey by CryptoQuant found that young, educated, and predominantly male individuals are the main drivers of cryptocurrency investment. The majority of crypto investors are between 25-44 years old, with most investing less than $10,000 annually and preferring popular platforms like Binance.
WeatherlyElon Musk’s delayed Twitter stock disclosure allegedly cost investors $150 million, raising questions about how Trump’s administration will handle the case. With a new SEC chair incoming, will Trump intervene for his close ally or let the process play out?
CatherineCoinbase has relaunched Bitcoin-backed loans via Morpho on its Ethereum layer-2 network, Base. With a $100,000 USDC cap and a 133% collateral requirement, the offering ensures lender protection while supporting borrowers.
KikyoThe value of ROSS memecoin surged after speculation that President-elect Trump might pardon Ross Ulbricht, the Silk Road creator. The coin’s rise reflects growing support for Ulbricht's release, with traders betting on a potential presidential commutation.
Anais
