Loopscale Labs Faces $5.8M Exploit, Negotiates with Hacker for Fund Return

On April 27, 2025, Loopscale Labs, a Solana-based DeFi protocol, reported a $5.8 million exploit, with hackers draining approximately 5.7 million USDC and 1,200 SOL from its USDC and SOL vaults.

The breach, affecting 12% of the platform’s total value locked, stemmed from a manipulation of the RateX PT token pricing functions. Loopscale promptly paused all markets to investigate and mitigate further losses.

In a promising development, the exploiter responded at 3:52 PM ET on April 28, expressing willingness to return the stolen funds in exchange for a bounty. Loopscale is actively negotiating an amicable resolution and has delayed its planned withdrawal resumption and technical post-mortem to finalize the agreement.