Loopscale Solana DeFi Exploit: $5.8M Hack

Solana's Loopscale Suffers $5.8 Million Exploit

Decentralized finance (DeFi) protocol Loopscale, operating on the Solana blockchain, temporarily suspended its lending services following a significant security breach resulting in approximately $5.8 million in losses.

On April 26th, a hacker exploited vulnerabilities within the protocol to obtain roughly 5.7 million USDC and 1200 SOL by taking out a series of undercollateralized loans. Loopscale co-founder Mary Gooneratne confirmed the incident on X (formerly Twitter).

Loopscale swiftly responded by re-enabling loan repayments, top-ups, and loop closing. However, all other functionalities, including vault withdrawals, remain temporarily restricted while the team investigates the exploit and implements necessary security measures.

The attack affected only Loopscale's USDC and SOL vaults, representing about 12% of its total value locked (TVL). Gooneratne assured users that the team is actively working to recover the funds and protect user assets.

Impact and Industry Trends

This incident highlights the ongoing challenges in DeFi security. In Q1 2025 alone, blockchain security firm PeckShield reported over $1.6 billion in cryptocurrency stolen from various exchanges and smart contracts, with the majority linked to a significant attack on ByBit.

Loopscale's Unique Model

Launched in April 2025, Loopscale utilizes a unique order book model, differing from platforms like Aave. This model directly matches lenders and borrowers, aiming for increased capital efficiency and offering specialized lending markets for structured credit, receivables financing, and undercollateralized lending. Prior to the exploit, Loopscale boasted approximately $40 million in TVL and over 7,000 lenders.

The protocol offered attractive APRs exceeding 5% for USDC and 10% for SOL, further supporting various tokens and looping strategies for numerous token pairs.

Codeum: Your Partner in Blockchain Security

Incidents like the Loopscale exploit underscore the critical need for robust security measures in the DeFi space. Codeum offers comprehensive blockchain security services, including:

• Smart contract audits
• KYC verification
• Custom smart contract and DApp development
• Tokenomics and security consultation
• Partnerships with launchpads and crypto agencies

Contact Codeum today to secure your project and mitigate potential risks.