The popular DeFi protocol Loopscale just got cleaned out. The Solana-based lending platform that was supposed to be the next big thing, just took a $5.8 million hit.
And let me tell you, the way things are going in crypto this year, it’s starting to feel like we’re all extras in a heist movie, except the bad guys keep winning.
Manipulation
On April 26, some wise guy figured out how to manipulate Loopscale’s RateX PT token pricing. Next thing you know, 5.7 million USDC and 1,200 SOL-poof, gone.
Today, an attacker took out a series of undercollateralized loans on the protocol, exploiting the Loopscale USDC and SOL Vaults for ~$5.8M
The exploit represents about 12% of funds on Loopscale.
Our team is fully mobilized to investigate, recover funds, and ensure users are… https://t.co/Up9JYZkcGn
— Mary Gooneratne (@marygooneratne) April 26, 2025
Just like that. The vaults for USDC and SOL, about 12% of Loopscale’s total stash, got hit. If you had funds parked there, well, I hope you weren’t planning that vacation just yet.
Now, the Loopscale crew, led by co-founder Mary Gooneratne, is scrambling.
They’ve managed to flip the switch back on for loan repayments, collateral top-ups, and closing loops. But if you’re thinking about pulling your money out?
No. Withdrawals are still locked down while the team and the authorities try to piece together what happened.
They’re promising to recover funds and keep users protected, but let’s be real, how many times have we heard that speech before?
Update: Loopscale has re-enabled loan repayments, top-ups, and loop closing. All other app functions (including Vault withdrawals) are still temporarily restricted while we investigate and ensure mitigation of this exploit.
The root cause of the exploit has been identified as an… https://t.co/Pk2pMx8UcK
— Loopscale (@LoopscaleLabs) April 26, 2025
Apex predators
This hack is part of a bigger, uglier trend. In the first quarter of 2025, hackers made off with more than $1.6 billion across the crypto world.
Most of that damage? Courtesy of the infamous Lazarus Group out of North Korea, who knocked over Bybit for a cool $1.5 billion.
That’s not a typo, my friend. Ninety-four percent of all stolen crypto this year traces back to these guys.
Launch
Loopscale’s story stings a little extra. The protocol only launched publicly on April 10, after six months in beta.
They promised a slick new lending model-order books, direct matching, fancy structured credit markets.
The kind of innovation that gets investors and degens all hot and bothered. Before the hack, they were juggling $40 million in total value locked and over 7,000 lenders, with vaults paying out juicy yields north of 5% and 10% APR. Now? All that ambition, put on ice.
So, in DeFi, you can have the best tech, the flashiest backers, and all the optimism in the world. But one clever crook and-bang, it’s all up in smoke.
Maybe next time, the good guys will catch a break. But for now, keep your passwords tight and your expectations tighter.
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