Solana DeFi protocol Loopscale hit with $5.8 million exploit two weeks after launch
Quick Take
- Solana DeFi protocol Loopscale lost $5.8 million on Saturday after an unknown attacker exploited an issue with one of its markets, the platform said.
- Loopscale said it is actively working with law enforcement to track down the perpetrator and attempt to recover funds.
- The platform temporarily restricted certain features on Saturday as it investigates the incident.
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.
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