Finding out Time: 2 minutes
- Loopscale has efficiently recovered your total $5.8 million stolen in an April 26 exploit.
- The attacker returned the funds after accepting a 10% white-hat bounty and proper form immunity
- The attacker exploited the protocol and drained roughly the funds from Loopscale’s USDC and SOL vaults
Loopscale, a decentralized finance (DeFi) protocol on the Solana blockchain, has entirely recovered the $5.8 million stolen at some stage in an exploit on April 26. The attacker agreed to return the funds in replace for a 10% bounty and immunity from correct form lag, highlighting the effectiveness of proactive negotiation systems. This reinforces a rising pattern of hackers accepting such bounties, due in part to the elevated surveillance of stolen funds.
Negotiations Pay Off
On April 26, Loopscale suffered a security breach when the attacker exploited a vulnerability within the RateX PT token pricing mechanism, permitting them to drain roughly $5.7 million from Loopscale’s USDC and SOL vaults. This represented about 12% of the platform’s entire rate locked.
In response, Loopscale initiated a white-hat negotiation plan; on April 27, the platform publicly supplied the attacker a 10% bounty and a full release of liability in replace for the return of 90% of the stolen funds. The attacker answered positively, returning an initial 5,000 Wrapped SOL (WSOL), valued at roughly $740,000.
Negotiations persisted to the point where Loopscale became able to recuperate the overall stolen funds, as it reported the day previous:
Following successful negotiations, all funds taken from the Loopscale protocol (5,726,725 USDC + 1,211 SOL) on April twenty sixth own now been returned.
Users will incur no lack of deposits from this incident. Additional necessary functions (together with records on vault withdrawals) to exhaust. https://t.co/zAgzAcGMSU
— Loopscale (@LoopscaleLabs) April 29, 2025
The Loopscale neighborhood has praised Loopscale’s swift and transparent facing of the incident:
Wonderful! Thanks crew @LoopscaleLabs for facing this set aside so professionally!
I’m very cosy my funds are returned and safe.— Markus (@MrMarkus_Fin) April 29, 2025
Loopscale has dedicated to releasing a full post-mortem document and is conducting thorough security assessments to stop future incidents. While mortgage repayments and loop closing functionalities had been re-enabled, vault withdrawals live temporarily paused pending extra investigation.
