#BinanceAlphaPoints
Loopscale Exploited for $5.8 Million Just Two Weeks After Launch, Suspends Key Services
Solana-based lending protocol Loopscale suffered a $5.8 million exploit on Saturday, less than two weeks after its launch on April 10. The attacker drained approximately 5.7 million USDC and 1,200 SOL through a series of undercollateralized loans. According to Loopscale, the breach stemmed from a vulnerability related to the pricing of RateX-based collateral. In response, the team temporarily disabled withdrawals, loan repayments, and several other functions to mitigate further losses. While some services, such as repayments, top-ups, and loop closures, have since been restored, vault withdrawals and new deposits remain paused.
The incident affected roughly 12% of Loopscale’s total value locked (TVL), which had climbed to about $40 million prior to the exploit. In a statement on X, the team said they are investigating the details of the attack, the identity of the perpetrator, and potential avenues for fund recovery. Loopscale is also collaborating with law enforcement agencies.
Previously known as Bridgesplit, Loopscale was designed to offer an alternative to traditional pool-based lending platforms like Aave and Solend. Instead of pooling liquidity, it directly matches lenders and borrowers via an order book system. The platform supports over 40 token pairs and offers specialized lending options, such as structured credit and receivables financing. Its USDC vault offered yields above 5%, while the SOL vault delivered returns exceeding 10%. Before the breach, the platform had attracted around 7,000 lenders.
#
