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Loopscale Suffers $5.8 Million Exploit, Temporarily Halts Lending Markets

Solana-based decentralized finance (DeFi) protocol Loopscale has temporarily paused most of its operations following an exploit that resulted in approximately $5.8 million in losses. The incident occurred on April 26, when a hacker siphoned around 5.7 million USDC and 1,200 SOL by taking out a series of undercollateralized loans, according to Loopscale co-founder Mary Gooneratne. Following the breach, Loopscale announced on X that it had re-enabled loan repayments, top-ups, and loop closing functionalities. However, all other app features, including vault withdrawals, remain temporarily restricted as the team continues to investigate the attack and work on mitigation measures. Gooneratne emphasized that the exploit only affected Loopscale’s USDC and SOL vaults and that the losses represent roughly 12% of the platform’s total value locked (TVL). “Our team is fully mobilized to investigate, recover funds, and ensure users are protected,” Gooneratne said in her post. About Loopscale Prior to the exploit, Loopscale’s main USDC and SOL vaults were offering annual percentage rates (APRs) exceeding 5% and 10%, respectively. The platform also supports lending markets for a range of tokens, including JitoSOL and BONK, along with looping strategies for more than 40 different token pairs. According to blockchain researcher OurNetwork, Loopscale had attracted over 7,000 lenders and accumulated around $40 million in TVL before the breach. The team’s response to the incident and the steps they take toward recovery and security enhancements will likely play a crucial role in restoring community trust moving forward. Crypto Hacks in 2025 The hack adds to a growing list of crypto exploits in 2025 . Blockchain security firm PeckShield reported earlier this month that hackers stole more than $1.6 billion worth of digital assets during the first quarter alone. Notably, over 90% of that figure is attributed to a $1.5 billion attack on centralized exchange ByBit , allegedly carried out by North Korean cybercrime group Lazarus. Loopscale had only recently launched on April 10 following a six-month closed beta. The DeFi platform offers a unique approach to lending by directly matching lenders with borrowers, rather than using traditional liquidity pools as seen with competitors like Aave. This order book model supports a variety of specialized lending markets, including structured credit, receivables financing, and undercollateralized loans. The post Loopscale Suffers $5.8 Million Exploit, Temporarily Halts Lending Markets appeared first on TheCoinrise.com . CoinOtag

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