- Loopscale experienced a significant exploit leading to the loss of $5.7M USDC and 1,200 SOL.
- The breach exploited oracle vulnerabilities, affecting 12% of the platform’s holdings.
- Comprehensive investigations are underway with a focus on fund recovery and increased security measures.
Loopscale, a Solana-based lending protocol, reported manipulation of its RateX PT token pricing at 11:30 AM EST, resulting in a loss of approximately 5.7 million USDC and 1,200 SOL from its vaults. The breach underscores a pattern in DeFi hacks exploiting oracle vulnerabilities, affecting 12% of Loopscale’s total holdings. The platform halted markets, aiming to prevent further losses and restore critical functions.
Measures are in place to restore repayment functions promptly to prevent unforeseen liquidations. A comprehensive investigation is underway with law enforcement and security experts. The team, led by co-founder Mary Gooneratne, has reiterated its commitment to transparency and fund recovery efforts. Stakeholders express concern over the potential ripple effects on user trust and DeFi stability.
Details of the Exploit
Loopscale’s team identified a manipulation within the pricing functions of the RateX PT token, causing an estimated 5.7 million USDC and 1,200 SOL to be stolen. The funds represent about 12% of Loopscale’s total funds. All Loopscale markets have been suspended for detailed investigation. The vulnerability primarily affects depositors in USDC and SOL vaults, leaving borrowers and revolving loan users unaffected.
“Our team is fully mobilized to investigate, recover funds, and ensure users are protected.” — Mary Gooneratne, Co-Founder, Loopscale
USDC Market Performance
Did you know? In Q1 2025 alone, the crypto industry witnessed hacks totaling $1.6 billion, predominantly targeting centralized and DeFi platforms. This highlights the ongoing challenge of securing digital assets.
USDC holds a stable 1.00 US dollar value, indicating consistent performance amid volatile market conditions. With a market cap of $62.09 billion, USDC accounts for 2.10% of market dominance. Although the 24-hour trading volume dipped by 20.01%, USDC’s overall price remained stable, as per CoinMarketCap data on April 27, 2025.
Research concludes that ongoing regulatory scrutiny could shift market dynamics, with potential for tighter controls and innovation in smart contract security. DeFi platforms may adopt enhanced protocols to counteract vulnerability exploits, aligning with broader industry trends towards increased transparency and security.
Source: https://coincu.com/334637-loopscale-exploit-usdc-sol-loss/