Loopscale Suffers $5.7M Exploit on Solana’s Lending Protocol – Coincu

Loopscale’s RateX PT token on Solana was manipulated, resulting in a $5.7 million USDC and 1,200 SOL loss, announced via platform X at 11:30 AM EST. Loopscale halted all market activities to investigate further, aiming to safeguard future operations and restore functions promptly.

The breach highlights vulnerabilities within DeFi protocols and emphasizes the need for robust security measures and regular audits. Immediate halts on all Loopscale markets affect depositors in the SOL and USDC treasuries, with ongoing investigations by security experts and law enforcement to recover misplaced assets.

$5.7M Exploit Halts Loopscale Operations

Manipulation of the RateX PT token resulted in the theft of approximately 5.7 million USDC and 1,200 SOL. This incident comes just weeks after Loopscale publicly launched its lending service. Sanctioned security teams are conducting in-depth analyses to unravel the breach’s methodology.

The attack triggered an immediate pause on all Loopscale market activities. This halt allows the team to ensure no further financial malfeasance occurs and to restore the system’s repayment function to prevent potential liquidations, integrating feedback from law enforcement discussions.

“Our team is fully mobilized to investigate, recover funds, and ensure users are protected.” — Mary Gooneratne, Co-founder, Loopscale

DeFi Security Under Scrutiny After Breach

Did you know? The manipulation of pricing functions, as seen in the Loopscale breach, traces back to past DeFi protocols where similar exploits often pinpoint previously unaudited features.

USDC prices fluctuate minimally despite the incident, reflecting its strong market presence. According to CoinMarketCap, as of April 27, USDC’s price stands at $1.00, with a market cap of $62.25 billion. Trading volume saw a notable decrease of 43.44% over 24 hours.

Coincu analysts suggest the breach could incite increased scrutiny of emerging DeFi platforms, primarily focusing on market manipulation risks. Evaluating technical controls and regulatory frameworks may alleviate investor concerns and bolster future developments.