DeFi Protocol Loopscale Hit by Exploit, Pauses Key Functions

Loopscale, a decentralized finance platform constructed on Solana, was compelled to pause its lending operations after a serious safety breach led to losses of round $5.8 million.

The exploit, which occurred on April 26, concerned a hacker draining roughly 5.7 million USDC and 1,200 SOL by executing a collection of undercollateralized loans, in response to co-founder Mary Gooneratne.

Following the breach, Loopscale shortly moved to partially reopen its platform, permitting customers to repay loans, add collateral, and shut loops, though different options like vault withdrawals stay suspended whereas investigations proceed. Gooneratne confirmed the exploit solely affected the platform’s USDC and SOL vaults, impacting round 12% of Loopscale’s whole worth locked (TVL).

The incident provides to a rising checklist of high-profile crypto exploits in 2025. Blockchain safety agency PeckShield just lately reported that over $1.6 billion has been stolen within the first quarter alone, with most losses tied to the $1.5 billion Bybit hack allegedly carried out by North Korea’s Lazarus Group.

Launched publicly on April 10 after months of beta testing, Loopscale affords a singular method to DeFi lending by matching debtors and lenders straight by an order e book mannequin, somewhat than utilizing pooled liquidity like conventional platforms resembling Aave. The platform helps a variety of specialised markets, together with structured credit score and undercollateralized loans.

Regardless of the setback, Loopscale has proven early momentum, drawing over 7,000 lenders and accumulating about $40 million in TVL. Its USDC and SOL lending vaults have been significantly standard, providing yields of over 5% and 10%, respectively. The platform additionally helps a wide selection of token pairs, together with JitoSOL and BONK, aiming to construct a various lending ecosystem.