Decentralised finance platform Loopscale has successfully settled with the hackers behind its recent exploit, securing the return of the stolen funds in exchange for a 10% bounty.
In an update posted on April 28, Loopscale announced that the attacker who drained approximately $5.8 million from its vaults agreed to return the majority of the stolen assets. In return, the hacker will keep 10% of the amount as a whitehat bounty. Loopscale expressed gratitude for the hacker’s willingness to resolve the breach amicably and pledged to provide further updates in the coming days regarding the resumption of vault withdrawals and a complete post-mortem analysis.
Details Behind the $5.8M Exploit
The security breach, which occurred on April 26, saw Loopscale’s RateX PT token pricing mechanism exploited. Hackers manipulated the system to siphon around $5.7 million in USD Coin (USDC) and approximately 1,200 Solana (SOL) tokens from user vaults.
Following the exploit, Loopscale quickly suspended vault withdrawals and paused all market activities to investigate the incident. The platform clarified that the exploit did not compromise the RateX collateral system itself. Instead, the breach only affected users who had deposited into the USDC and SOL vaults.
How Loopscale Negotiated the Return of Funds
To recover the stolen funds, Loopscale offered a whitehat bounty deal to the hacker on April 27. The offer proposed that the attacker would retain 10% of the stolen assets, amounting to 3,947 SOL—while returning the remaining 90%, roughly 35,527 SOL.
In exchange, Loopscale guaranteed the hacker immunity from any legal action. They set a deadline of April 28 at 6:00 AM EST for the hacker’s response. Before the deadline, the hacker accepted the terms and agreed to cooperate, initiating the return of the majority of the stolen assets.
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Growing Security Concerns in the Crypto Industry
The Loopscale incident comes amid a troubling surge in crypto-related security breaches. According to recent reports, the cryptocurrency sector suffered losses of over $1.6 billion during the first quarter of 2025 alone, marking the worst quarter for hacks and exploits in the industry’s history.
In addition to the Loopscale breach, several other high-profile attacks have rattled the crypto space in Q2 2025, including:
- A $572,000 exploit on SIR.trading
- A $5 million breach on ZKSync
- A $7 million hack targeting KiloEx
These incidents highlight ongoing vulnerabilities in decentralised finance protocols and the urgent need for stronger security measures across the sector.
What Happens Next for Loopscale Users?
With the recovery deal in place, Loopscale is working to resume vault withdrawals and reestablish platform stability. In their upcoming announcements, the team plans to release a comprehensive incident report detailing the breach, the recovery process, and steps taken to prevent future vulnerabilities.
Users with assets in the USDC and SOL vaults can expect more information soon regarding the restoration of services and any compensation mechanisms that may be introduced.
Final Thoughts
Loopscale’s successful negotiation with the hacker offers a rare positive outcome in a sector increasingly marred by security breaches. While the incident underscores the risks associated with decentralised finance, it also demonstrates that effective crisis management strategies, such as whitehat bounty offers, can play a crucial role in damage control.
Investors and users are advised to stay vigilant and monitor updates as Loopscale works toward a full recovery.
