Loopscale is a decentralized finance (DeFi) protocol based on Solana, which launched on April 10, 2025. Just two weeks later, it suffered a hacker attack resulting in losses exceeding 5.80 million USD, accounting for 12% of its total value locked (TVL). The attack originated from an isolated issue in Loopscale's collateral pricing based on RateX. Loopscale previously secured 4.25 million USD in venture capital from institutions including Solana Labs and Coinbase Ventures in 2021. The platform adopts an order book-based lending model, distinguishing it from traditional pool-based lending protocols. The protocol was audited by OShield, which identified and fixed several critical vulnerabilities, and is currently undergoing further audits by Sec3. Loopscale co-founder Mary Gooneratne stated that the team is fully investigating the incident, recovering funds, and protecting user interests. This incident is the latest among multiple hacker attacks in the crypto sector since 2025, including Bybit's 1.46 billion USD hack and KiloEX's 7 million USD oracle attack. After the incident, Loopscale restricted some platform functionalities but later restored operations such as loan repayment, collateral top-up, and position closure. The situation is still developing.

Loopscale, a Solana-based decentralized finance (DeFi) protocol, became 2025's latest hacking victim on Saturday, losing over $5.8 million, or 12% of its TVL, to an exploit affecting one of its markets."The root cause of the exploit has been identified as an isolated issue with Loopscale’s pricing of RateX-based collateral," the protocol said on X. "There is an ongoing investigation into how this happened, who did this, and how we can most effectively recover funds."Loopscale, which launched on April 10, raised $4.25 million in VC funding from Solana Labs, Coinbase Ventures, and others in 2021. The protocol was known as Bridgesplit at the time, and originally proposed an NFT-based yield product. Loopscale's order book-based lending platform is different from pool-based lending protocols, such as Aave or Solend, offering more predictable terms and eliminating the rate volatility common in variable-rate lending protocols​.The protocol was audited by OShield, which found several critical vulnerabilities when it conducted the audit between January and February of this year."Loopscale has been audited and is currently undergoing additional audits. All critical and high-risk issues identified have been fixed," the protocol's FAQ reads. Another audit, by Sec3, is reportedly in progress."Our team is fully mobilized to investigate, recover funds, and ensure users are protected," Loopscale co-founder Mary Gooneratne wrote on X. Loopscale did not immediately respond to a request for comment from The Block.The exploit adds to a lengthening list of 2025 crypto hacks and exploits. Bybit's record $1.46 billion hack in February has been joined in recent weeks by a $7 million oracle exploit affecting KiloEX, a $49 million loss from stablecoin neoback Infini, and more.Loopscale initially restricted its platform's features, but re-enabled loan repayments, top-ups, and loop closing on Saturday evening.This is a developing story.

Solana DeFi Protocol Loopscale Suffers $5.80 Million Hacker Attack Two Weeks After Launch