Solana DeFi Protocol Loopscale Hit by $5.8 Million Exploit Weeks After Launch
Another day, another DeFi hack. Loopscale, a new Solana-based decentralized finance protocol, has joined the growing list of crypto platforms hit by exploits in 2025. The fledgling project lost over $5.8 million, roughly 12% of its total value locked (TVL), just two weeks after its public launch.
According to the Loopscale team, the breach stemmed from a pricing vulnerability linked to RateX-based collateral. The exploit has prompted immediate action, including feature restrictions, an ongoing investigation, and engagement with law enforcement to pursue the attacker.
What Happened to Loopscale?
Loopscale announced the exploit on X, formerly known as Twitter, on Saturday. Here’s what we know so far:
- Root cause: Isolated issue with the pricing of RateX-based collateral.
- Impact: Approximately $5.8 million drained from the platform.
- Response: Temporary feature restrictions were imposed, but loan repayments, top-ups, and loop closing were re-enabled within hours.
- Next steps: The team is working with law enforcement to track the attacker and recover the stolen funds.
Loopscale’s model is built around an order book-based lending platform, offering more predictable terms compared to variable-rate, pool-based protocols like Aave or Solend. Ironically, the predictability was meant to reduce user risks—but the collateral pricing vulnerability exposed an entirely different kind of danger.
Loopscale’s Rocky Road: VC Funding, Audits, and Missed Red Flags
Originally known as Bridgesplit, Loopscale raised $4.25 million in venture capital in 2021, attracting big names like Solana Labs and Coinbase Ventures.
Although the project completed an audit by OShield earlier this year, that audit reportedly flagged several critical vulnerabilities, all of which were supposedly fixed. A second audit by Sec3 was ongoing at the time of the exploit.
Despite these security measures, the breach highlights a major issue in the DeFi space: audits alone are not a guarantee of safety.
Mary Gooneratne, co-founder of Loopscale, emphasized that the entire team is mobilized to “investigate, recover funds, and ensure users are protected.” Still, confidence in newer DeFi platforms remains shaky after yet another high-profile hack.
Growing List of 2025 Crypto Hacks
Loopscale’s exploit is just one entry in an increasingly troubling list of major crypto hacks in 2025. Some other incidents include:
- Bybit’s $1.46 billion hack in February
- KiloEX’s $7 million oracle manipulation exploit
- Infini’s $49 million stablecoin breach
The numbers are stacking up, and the trend suggests that despite improved security practices, DeFi remains a high-risk, high-reward environment.
Final Thoughts: DeFi’s Security Crisis Continues
The Loopscale hack serves as a stark reminder that even audited and venture-backed protocols are vulnerable to sophisticated attacks. As Solana’s DeFi ecosystem continues to grow, so does the complexity—and the risk.
Loopscale’s quick response and collaboration with law enforcement offer a glimmer of hope for fund recovery, but whether users’ confidence can be restored remains to be seen.
This story is still developing, and we will update as more details emerge.
