Loopscale, a decentralized finance platform constructed on Solana, was pressured to pause its lending operations after a serious safety breach led to losses of round $5.8 million.
The exploit, which occurred on April 26, concerned a hacker draining roughly 5.7 million USDC and 1,200 SOL by executing a collection of undercollateralized loans, in keeping with co-founder Mary Gooneratne.
Following the breach, Loopscale rapidly moved to partially reopen its platform, permitting customers to repay loans, add collateral, and shut loops, though different options like vault withdrawals stay suspended whereas investigations proceed. Gooneratne confirmed the exploit solely affected the platform’s USDC and SOL vaults, impacting round 12% of Loopscale’s complete worth locked (TVL).
The incident provides to a rising record of high-profile crypto exploits in 2025. Blockchain safety agency PeckShield not too long ago reported that over $1.6 billion has been stolen within the first quarter alone, with most losses tied to the $1.5 billion Bybit hack allegedly carried out by North Korea’s Lazarus Group.
Launched publicly on April 10 after months of beta testing, Loopscale provides a novel strategy to DeFi lending by matching debtors and lenders immediately by means of an order ebook mannequin, slightly than utilizing pooled liquidity like conventional platforms reminiscent of Aave. The platform helps a variety of specialised markets, together with structured credit score and undercollateralized loans.
Regardless of the setback, Loopscale has proven early momentum, drawing over 7,000 lenders and accumulating about $40 million in TVL. Its USDC and SOL lending vaults have been significantly widespread, providing yields of over 5% and 10%, respectively. The platform additionally helps a big selection of token pairs, together with JitoSOL and BONK, aiming to construct a various lending ecosystem.
