Loopscale, a newly launched decentralized finance (DeFi) platform built on Solana, has become the latest target in a string of high-profile crypto exploits in 2025, losing more than $5.8 million—around 12% of its total value locked (TVL)—to a targeted attack.
According to an official statement posted on X, Loopscale confirmed that the breach stemmed from a vulnerability tied to the pricing mechanism of RateX-based collateral.
“The root cause of the exploit has been identified as an isolated issue with Loopscale’s pricing of RateX-based collateral,” the team announced.
Investigations are now underway to determine how the exploit was executed, who was responsible, and what recovery options are available.
Launched on April 10, Loopscale attracted considerable backing before its public debut, securing $4.25 million in venture funding from major investors such as Solana Labs and Coinbase Ventures during its early phase when it operated under the name Bridgesplit. Initially focusing on NFT-based yield strategies, the project later pivoted toward building an order book-based lending platform—an alternative model to traditional pool-based DeFi giants like Aave and Solend. Loopscale’s system aimed to offer more stable and predictable lending terms by eliminating the volatility of variable-rate lending markets.
Audit Oversight Raises Questions as Loopscale Scrambles After Exploit
The exploit has reignited concerns over the effectiveness of blockchain security audits after it emerged that key vulnerabilities had been flagged during earlier reviews.
According to the platform’s FAQ, Loopscale underwent an audit by security firm OShield between January and February 2025, which identified several critical and high-risk issues. The team claimed that all flagged vulnerabilities were addressed prior to launch and noted that a second audit by cybersecurity firm Sec3 was in progress at the time of the exploit.
Despite these precautions, the attack was able to exploit flaws in the protocol’s RateX collateral pricing system—raising broader questions about how well even audited DeFi projects can guard against increasingly sophisticated threats.
In a public statement, Loopscale co-founder Mary Gooneratne assured users that the team is “fully mobilized to investigate, recover funds, and ensure users are protected.” However, the protocol has yet to release a full post-mortem report or respond to additional media inquiries.
Loopscale Hack Adds to Crypto Sector’s $1.6B Crisis in Early 2025
The $5.8 million exploit at Loopscale adds to an alarming wave of losses across the crypto industry in 2025, with security breaches hitting both DeFi platforms and centralized exchanges.
According to data from Immunefi and CertiK, more than $1.67 billion worth of crypto assets were stolen during the first quarter alone—compressing over two-thirds of 2023’s full-year losses into just three months. The vast majority of incidents have been attributed to sophisticated hacking campaigns, phishing attacks, and vulnerabilities within smart contracts.
The most devastating incident so far remains February’s Bybit breach, which resulted in $1.45 billion in losses and reignited concerns over centralized exchange security protocols. Private key compromises have also emerged as a significant risk, accounting for $142 million in damages across just 15 known cases.
Following the exploit, Loopscale immediately froze all lending and withdrawal functions but later restored limited platform features—including loan repayments, position top-ups, and loop closing—by Saturday evening. Full functionality remains suspended pending further investigation.
Quick Facts
- Loopscale suffered a $5.8 million exploit due to manipulation of its RateX PT token pricing functions.
- The breach impacted approximately 12% of the platform’s total value locked.
- All lending and withdrawal operations were initially paused; limited services were restored later.
- The DeFi sector has recorded over $1.6 billion in losses due to hacks in Q1 2025.
