DeFi Protocol Loopscale Successfully Recovers All Stolen Funds Following Exploit Incident

Loopscale Recovers All Stolen Funds After $5.8 Million Exploit

Loopscale, a decentralized finance (DeFi) protocol on the Solana blockchain, has successfully recovered all $5.8 million stolen during an exploit on April 26. The attacker agreed to return the funds in exchange for a 10% white-hat bounty and legal immunity.

On April 26, Loopscale suffered a security breach when the attacker exploited a vulnerability in the RateX PT token pricing mechanism, allowing them to drain approximately $5.7 million from Loopscale’s USDC and SOL vaults. This represented about 12% of the platform’s total value locked.

In response to the incident, Loopscale initiated a white-hat negotiation strategy. On April 27, the platform publicly offered the attacker a 10% bounty and a full release of liability in exchange for the return of 90% of the stolen funds. The attacker responded positively, returning an initial 5,000 Wrapped SOL (WSOL), valued at approximately $740,000.

Negotiations continued until Loopscale was able to recover all the stolen funds, as confirmed yesterday: “Following successful negotiations, all funds taken from the Loopscale protocol (5,726,725 USDC + 1,211 SOL) on April 26th have now been returned. Users will incur no loss of deposits from this incident.” The Loopscale community has praised the team for their swift and transparent handling of the situation.

Loopscale has committed to releasing a full post-mortem report and conducting thorough security assessments to prevent future incidents. Loan repayments and loop closing functionalities have been re-enabled, while vault withdrawals remain temporarily paused pending further investigation.

Source: https://fullycrypto.com/loopscale-recovers-all-stolen-funds-after-5-8-million-exploit?utm_source=rss&utm_medium=rss&utm_campaign=loopscale-recovers-all-stolen-funds-after-5-8-million-exploit