The decentralized finance protocol Loopscale was the victim of a cyber attack that resulted in a loss of over $5.8 million. The platform is investigating the incident and working to recover the lost funds.
Incident Overview
As a result of the cyber attack, Loopscale lost over $5.8 million, which constitutes about 12% of its total value locked. The platform continues its investigation into how the attack occurred and is working to identify the hackers. In a post on X, Loopscale remarked that "the root cause of the exploit has been identified as an isolated issue with Loopscale’s pricing of RateX-based collateral."
Platform Operations Post-Attack
Hackers manipulated RateX PT token pricing functions, draining 1200 SOL and $5.7 million USDC from the platform's vaults. Shortly after the attack, Loopscale temporarily closed its markets. However, after a few hours, loan repayments, top-ups, and loop closing were reactivated while withdrawal functions remained restricted. The attack mainly affected Loopscale’s USDC and SOL vault depositors.
Cyber Threats in the Crypto Industry
Since the beginning of 2025, the crypto industry has lost billions due to cyber attacks. Earlier this month, KiloEX suffered a $7 million loss due to price manipulation. Bybit was also hacked for $1.46 billion, marking the largest theft in the crypto industry. In 2025 alone, over $1.6 billion has been lost due to attacks on DeFi platforms.
Cyber attacks continue to threaten the crypto industry, causing substantial financial losses. Platforms like Loopscale must adapt to these threats and take measures to protect their users and funds.
