The result was a loss of approximately $5.7 million USDC and 1,200 SOL.
The exploit was caused by a manipulation of the RateX PT token pricing functions, which impacted around 12% of the funds in these vaults.
Loopscale Pauses Markets After DeFi Breach
In response, Loopscale has paused its markets and initiated a full investigation to understand the scope of the breach and implement corrective measures. This incident highlights the vulnerabilities that can arise in DeFi platforms. It’s a reminder of the need for constant vigilance and robust security practices.
The exploit targeted the RateX PT token, a key component in Loopscale Labs’ vault system. The manipulation involved altering the pricing functions of this token. This allowed malicious actors to withdraw funds at an inflated rate, causing the loss of USDC and SOL. The incident has affected roughly 12% of the assets in the platform’s vaults. While the full extent of the damage is still being assessed, the attack is significant. It has prompted immediate action from Loopscale Labs. As of now, the platform has paused all market activities to prevent further losses and to facilitate a comprehensive investigation into the breach.
Today at 11:30AM EST, a manipulation of Loopscale’s RateX PT token pricing functions led to an exploit of ~5.7M USDC and 1,200 SOL from the Loopscale USDC and SOL Vaults. All Loopscale markets have been temporarily halted while our team investigates further.
This exploit…
— Loopscale (@LoopscaleLabs) April 26, 2025
In recent months, we’ve seen a rise in DeFi platform vulnerabilities. A similar exploit occurred on a major decentralized exchange last year. The attacker manipulated token pricing to drain liquidity pools. These incidents underline the growing concerns around security in the rapidly expanding DeFi sector.
More About the Loopscale Exploit
Loopscale has provided an update regarding the recent exploit. Loan repayments, top-ups, and loop closings have been re-enabled, while other app functions. It includes Vault withdrawals, remain temporarily restricted for investigation. The exploit’s root cause has been traced to an issue with Loopscale’s pricing system for RateX-based collateral. With no fault found in RateX itself. The exploit directly impacted depositors of the SOL and USDC Genesis vaults.
The Loopscale team has sent the following message to the address of the exploiter:
We are aware that you exploited a vulnerability in Loopscale’s pricing system earlier today. We are working closely with law enforcement, security firms, exchanges, and bridge protocols, to… https://t.co/MCoGpyxRB4
— Loopscale (@LoopscaleLabs) April 27, 2025
Finally, to resolve the situation, Loopscale has sent a message to the exploiter. Acknowledging their actions and offering a whitehat agreement. So, if the exploiter returns 90% of the stolen funds (35,527 SOL), Loopscale will allow them to retain a 10% bounty (3,947 SOL) and release them from liability. Law enforcement, security firms, exchanges, and bridge protocols are working with Loopscale to freeze any stolen funds. Their goal is to ensure the exploit is mitigated.
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