Loopscale Suffers Significant Exploit
Loopscale, a Solana-based DeFi lending platform, suspended lending after hackers stole approximately $5.8 million. The hack, executed on April 26, involved a series of undercollateralized loans draining some 5.7 million USDC and 1,200 SOL, as co-founder Mary Gooneratne explained to CoinDesk.
The event affected Loopscale’s USDC and SOL vaults and resulted in the loss of around 12% of the total value locked (TVL) on the platform.
“We are totally mobilized to look into, recover funds, and safeguard users,” Gooneratne tweeted on X.
Immediate Response and Recovery Efforts
Loopscale said it is moving quickly to bring back repayment functionality to prevent further user liquidations.
In spite of the glitch, the company has promised to fortify the security framework of the platform and keep users updated during the recovery process.
A Broader Context: Growing Crypto Hacks
The Loopscale hack conforms to a growing number of crypto hacks. During the first quarter of 2025 alone, blockchain security firm PeckShield documented over $1.6 billion in stolen crypto assets.
Interestingly, 90% of such losses are linked to a $1.5 billion hack of the ByBit centralized exchange due to North Korea’s Lazarus Group.
Loopscale’s Differentiated DeFi Model
Released on April 10 following six months of closed beta, Loopscale offers a differentiated DeFi model through direct matching of lenders and borrowers instead of commingling funds like Aave.
The platform also supports niche markets such as structured credit, receivables financing, and undercollateralized lending.
Loopscale’s SOL and USDC vaults offer very attractive APRs of 10% and 5%, respectively, and the platform is backed by over 7,000 lenders with a TVL of $40 million.
