The decentralized lending protocol Loopscale, built on Solana, has suspended its operations following a successful attack that resulted in the theft of assets worth $5.8 million. According to co-founder Mary Gunaratne, the attacker obtained a series of undercollateralized loans, allowing them to withdraw large amounts of USDC and Solana.
This is reported by Finway
Expenses and Restrictions After the Attack
Following the incident, the protocol resumed loan repayments and replenishments; however, the ability to withdraw funds from the vault and several other functions remain restricted. Representatives from Loopscale stated that they are conducting an investigation into the matter and taking measures to minimize losses for users. The losses amounted to approximately 12% of the total value locked in the project.
Details of the Incident and Context
Loopscale was launched on April 10, 2025, after a lengthy period of closed testing. The project offered a lending model that directly matches lenders and borrowers, viewing it as an alternative to traditional liquidity pools. Among the available solutions are structured loans and accounts receivable financing.
Prior to the incident, Loopscale’s total value locked (TVL) exceeded $40 million, and the number of users on the protocol reached 7,000. The main vaults for USDC and Solana provided yields of 5% and 10% annually, respectively, attracting investor interest.
The Loopscale exploit became part of the overall negative statistics for the first quarter of 2025. According to Hacken, over $2 billion was stolen from cryptocurrency exchanges and DeFi protocols during this period, a significant portion of which is linked to the attack on the ByBit exchange.
“Today at 11:30 AM Eastern Time, manipulation of the RateX PT token pricing functions led to an exploit of approximately $5.7 million USDC and 1,200 SOL from Loopscale’s Vaults.” – Loopscale (@LoopscaleLabs)