News of another big hack has surfaced in the world of cryptocurrency. Solana DeFi Protocol Loopscale fell victim to a major hack just two weeks after its launch. The protocol has lost more than $5.8 million (about Rs 48 crore) in this hack, causing panic among the platform and its investors.
It is worth noting that before this, the hack on Crypto Exchange Bybit and WazirX had made a lot of headlines.
How did the attack happen?
In this attack, which took place on April 26, hackers exploited a vulnerability in one of Loopscale’s lending markets. According to Loopscale co-founder Mary Gooneratne, the attackers stole approximately 5.7 million USDC and 1,200 SOL. This loss is approximately 12% of the protocol’s total TVL (Total Value Locked).
Soon after the attack, the team temporarily shut down lending operations and later resumed limited functions such as loan repayments, top-ups, and loan closing. However, vault withdrawals and other key features are still suspended.
A technical glitch in pricing was the main reason for the attack
Loopscale has confirmed that the attack was caused by an isolated issue in the pricing of RateX-based collateral. This flaw allowed hackers to obtain undercollateralized loans. The team is investigating the matter to determine the scope of the attack, the responsible parties, and options for fund recovery.
Loopscale Background and Security Checks
Loopscale was launched on April 10, 2025. The project is the next version of Bridgesplit, which previously focused on NFT-based yield products. Loopscale received $4.25 million in funding in 2021 from Solana Labs, Coinbase Ventures, and other big investors.
Instead of traditional pool-based lending protocols like Aave and Solend, Loopscale runs an order book-based system, which provides more predictable lending terms. The protocol underwent an audit by security firm OSheild before launch, which revealed several serious vulnerabilities that were later fixed. However, another security audit, by Sec3, is still ongoing.
Increasing hacking attacks in the DeFi industry
This case of Loopscale is the latest name in the list of increasing DeFi attacks in 2025. There have been many hacks so far this year, of which the Bybit Hack was the most notable. According to the information, assets worth $1.46 billion were stolen in this hack on Crypto Exchange Bybit, which was linked to North Korea’s Lazarus Group. Apart from this, Infini Stablecoin Bank has reported a loss of $49 million, and DEX KiloEX has reported a loss of $7 million.
According to blockchain security firm PeckShield, hackers have caused a total loss of over $1.6 billion in Q1 of 2025 alone, with Bybit suffering the largest losses.
The Loopscale hack once again proves that security is still a major challenge in the DeFi industry. Although the team has resumed some services like loan repayments and top-ups, many questions remain regarding fund recovery and user security. The Loopscale team is investigating in collaboration with law enforcement agencies and cybersecurity experts. In the coming days, they will release a detailed technical report and withdrawal guidelines for affected users.