DeFi platform Loopscale became a victim of a hacking incident resulting in a loss of $5.8 million. However, after negotiations, hackers agreed to return most of the stolen funds.
Details of the Loopscale Incident
On April 26, Loopscale faced a significant security breach as attackers manipulated the pricing of its RateX PT token. This manipulation led to a loss of approximately $5.7 million in USD Coin (USDC) and 1,200 Solana (SOL) from the platform’s vaults. The exploit targeted depositors in the USDC and SOL vaults, while the RateX collateral system remained unaffected.
Agreement Terms with Hackers
In response to the breach, Loopscale immediately restricted vault withdrawals and temporarily halted all markets to investigate the incident. On April 27, the platform publicly proposed a whitehat bounty deal to the hacker to return 90% of the stolen assets and receive a 10% reward, along with immunity from legal actions. By April 28, the hacker agreed to the terms, signaling a willingness to return the stolen funds.
Context of Hacking Activity in the Crypto Industry
In the first quarter of 2025, the cryptocurrency sector experienced significant security challenges, with losses exceeding $1.6 billion from hacks, the highest quarterly total recorded. High-profile breaches continued into Q2, including thefts from SIR.trading, ZKSync, and KiloEx. Loopscale's strategy of negotiation and bounty incentives may serve as a potential model for other DeFi platforms dealing with similar issues.
Despite the challenges faced by the crypto industry, the situation with Loopscale demonstrates that there is the potential for amicable resolutions between hackers and platforms. This could become a new approach to security in DeFi.
