The Loopscale hack 2025 incident has taken an unexpected turn. The hacker responsible for stealing $5.8 million worth of crypto assets from the decentralized platform Loopscale has agreed to return the stolen funds. In exchange, the hacker will receive a 10% bounty as a reward for cooperating.
Loopscale Hack 2025: A Critical DeFi Security Breach
The attack targeted Loopscale, a credit protocol built on Solana. It represents a major DeFi security breach in the growing decentralized finance sector. The hacker managed to extract $5.7 million in USDC stablecoins and 1,200 SOL tokens by manipulating token pricing related to RateX PT. Importantly, the core security of RateX remained intact, and only user funds stored in USDC and SOL vaults were affected.
The exploit occurred just two weeks after Loopscale’s official launch on April 10, following a six-month closed beta testing phase. Overall, about 12% of the platform’s total value locked (TVL) was impacted, with the protocol previously managing around $40 million.
Solana Crypto Hack Exposes DeFi Platform Vulnerabilities
This Solana crypto hack has exposed serious DeFi platform vulnerabilities. Even though Loopscale had completed a security audit by OShield before launch, the platform was undergoing another audit by Sec3 at the time of the incident.
Following the Loopscale hack 2025, Loopscale immediately froze deposits and withdrawals to prevent further damage. They also involved law enforcement but offered the hacker a legal immunity deal if the funds were returned by April 28.
Growing Concerns Over DeFi Security Breaches
The Loopscale hack 2025 highlights a broader trend of DeFi security breaches. In March, decentralized protocol Abracadabra Finance suffered a $13 million loss after a hacker stole 6,260 ETH. Earlier in February, Bybit experienced the largest hack in crypto history, losing $1.4 billion in assets.
These incidents demonstrate that despite security efforts, vulnerabilities persist within decentralized ecosystems. Industry players must urgently prioritize new standards to protect users against growing risks in DeFi.
