Solana’s Loopscale Exploit Leads to $5.8M Loss: New Shocking Revelations Emerge

Loopscale, a Solana-based DeFi platform, was hacked for $5.8M. Discover the shocking details of the exploit and its impact on the platform’s future.
On Saturday, Loopscale, a decentralized finance (DeFi) protocol built on the Solana blockchain, became the victim of a significant security breach. The exploit resulted in a loss of over $5.8 million from the platform. According to updates shared on X, the root cause of the breach stemmed from a vulnerability in the pricing of RateX-based collateral. The Loopscale team has launched an investigation to determine the specifics of the exploit and identify those responsible.

The Rise of Loopscale and Its Vision for DeFi Lending

Originally known as Bridgesplit, Loopscale officially launched its order book-based lending platform on April 10. The protocol was designed to offer more predictable loan terms, a notable improvement over traditional pool-based platforms like Aave and Solend. Backed by $4.25 million in funding from high-profile investors like Solana Labs and Coinbase Ventures, Loopscale’s mission was to enhance the crypto market by providing a more stable and reliable decentralized lending experience.

Despite its promising launch and support from major backers, Loopscale found itself in the middle of a high-profile breach, calling into question the security of even the most well-funded DeFi platforms.

Security Concerns and the Ongoing Investigation

Following the exploit, Loopscale took immediate action to mitigate further risks by restricting certain platform features. By the evening, the platform had re-enabled key services like loan repayments and position top-ups as part of its recovery process. Co-founder Mary Gooneratne confirmed via X that the team was fully mobilized to investigate the breach and secure user assets. The team is also working to recover the lost funds.

Interestingly, Loopscale’s security had been audited earlier in the year by OShield, which identified some critical vulnerabilities. Although the protocol claimed that all high-risk issues were addressed, a second audit by Sec3 is still in progress. This incident highlights the growing concerns about security within the DeFi space, even for platforms that undergo multiple security audits.

Loopscale’s Setback: A Wider Trend in the Crypto Market

The breach of Loopscale is part of a full series of security issues in the crypto space in 2025. Back in February, Bybit got hacked for $1.46 billion, and KiloEX and Infini also lost millions. All of these show the ongoing concerns over vulnerabilities in decentralized finance, as much as there is comparison on projects showing their preparedness via audit and security protocols. 

As the SOL price continues to experience upwards moves and grab the attention of investors — and the Solana price continues to dominate headlines– it should be understood incidents such as the Loopscale breach demonstrates that every kind of project, including projects built on properly constructed blockchain projects (like Solana), can be open to exposure and attack. More worryingly, this presents a serious critical risk for the crypto space, and stresses the urgent need for supply and security of ongoing assets, to maintain with some longevity the Decentralized finance platforms that emerge.

The Future of Loopscale and Its Recovery Plan

Although the SOL price rally may be drawing more investor interest in Solana-based projects, Loopscale’s misstep is a stark reminder of the risks in the space. Although there is an ongoing investigation and recovery efforts, users and investors will be watching closely for Loopscale’s next steps.

The incident shows the growing need for better security protocols across DeFi platforms and leaves the crypto market wondering whether Loopscale can recover and secure its place. How Loopscale will respond in the wake of the events could serve as a precedent for other DeFi projects going forward.

Conclusion: A Wake-Up Call for DeFi Security

Loopscale’s $5.8 million loss is a clear indication of the risks associated with DeFi platforms, even with proper audit reviews. Users and investors must be watching to determine how Loopscale will recover after the investigations, and how it will safeguard its platform’s future. Thus far, security experts continue to stress the need for better security provisions across the decentralized finance space to avoid the risks of bad actors taking advantage of vulnerabilities in the future.