Solana’s Loopscale Suffers Setback After $5.8 Million Exploit Weeks After Launch

• Loopscale, a Solana-based DeFi lending protocol, was hacked two weeks after its launch, causing it to lose over $5.8 million (around 12% of its TVL) and forcing the platform to pause most of its services while investigations on the case go on.
• The platform was launched on April 10 after a six-month closed beta.

Solana’s DeFi project, Loopscale, has been hacked and is now one of the top 2025 hacks that caused victims to lose over $5.8 million, which amounts to about 12% of its total value locked. Following the incident, the platform decided to pause its lending services so as to prevent any further damage. The exploit happened just two weeks after Loopscale’s official launch, marking a major blow to the new protocol.

On the 26th of April, attackers exploited a vulnerability in one of Loopscale’s lending markets, stealing about 5.7 million USDC and 1,200 Solana (SOL), according to Mary Gooneratne, the cofounder of the platform. The stolen funds represent almost 12% of the protocol’s total value locked (TVL).

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

Due to the exploit, Loopscale temporarily paused its lending but later allowed limited functions, like loan repayments, top-ups, and loop closings. Other main features like Vault withdrawals remain restricted as the investigation continues.

According to the platform, the exploit happened because of a problem with how Loopscale priced RateX-based collateral. “There is no issue with RateX itself related to this. Loss of funds explicitly affects depositors to SOL and USDC Genesis vaults,” the platform added.

Presently, an investigation is ongoing to determine the full effect of the breach and also ways for fund recovery. Gooneratne stated that their team is fully mobilized to investigate the situation, recover stolen funds, and ensure user protection.

Digital Forensics: The Launch of Solana DeFi Lending Platform

The DeFi lending platform, Loopscale, was launched on April 10 after a six-month closed beta. It aims to improve capital efficiency by directly connecting lenders and borrowers. Its main USDC and SOL vaults offer yields above 5% and 10%, while also supporting lending for tokens like JitoSOL and BONK, along with looping strategies across more than 40 token pairs.

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