.jpeg)
DeFi protocol Loopscale has successfully recovered approximately $2.8 million of the funds stolen during a significant hack over the weekend. The recovery was made possible through negotiations with the hacker, who showed willingness to return a portion of the stolen assets in exchange for a bounty.
Key Takeaways
-
Loopscale recouped $2.8 million after a hack targeting its vaults.
-
The protocol introduced a bounty program, offering 10% of stolen funds to the hacker.
-
Loopscale remains optimistic about recovering additional stolen assets.
Overview of the Incident
On April 26, Loopscale fell victim to a major exploit that resulted in the theft of approximately $5.7 million in USDC and 1,200 Solana (SOL) from its vaults. The attackers manipulated the pricing functions of Loopscale’s RateX PT token, allowing them to siphon off a significant portion of the platform's total funds, which amounted to about 12% of its total assets. The attack primarily affected vault depositors, leaving borrowers and other users unharmed.
Recovery Efforts
Following the exploit, Loopscale's team took immediate action to recover the stolen funds. On April 27, they publicly announced their intention to negotiate with the hacker, offering a 10% bounty for the return of 90% of the stolen assets. The team warned that if an agreement was not reached within 24 hours, they would involve law enforcement.
By April 29, Loopscale reported significant progress in their recovery efforts:
-
10,000 Wrapped SOL (WSOL) returned, valued at approximately $1.48 million.
-
4,463 WSOL returned later, worth around $660,000.
-
An earlier recovery of 5,000 WSOL was also noted, totaling about $740,000.
Negotiations with the Hacker
The negotiations with the hacker have been characterized by a willingness to reach an amicable resolution. Loopscale confirmed that they received a response from the exploiter, indicating a readiness to return the stolen funds in exchange for the proposed bounty. The team expressed appreciation for the hacker's engagement and continued to work towards a resolution that would benefit both parties.
Broader Context of DeFi Hacks
The incident at Loopscale is part of a troubling trend in the decentralized finance (DeFi) sector, where hacks and exploits have become increasingly common. In the first quarter of 2025 alone, hackers stole over $1.6 billion worth of cryptocurrency from various platforms, with a significant portion attributed to a single attack on the Bybit exchange by the North Korean hacking group Lazarus.
Other DeFi platforms, such as KiloEx, have also faced similar challenges, with recent hacks prompting them to offer bounties for the return of stolen funds. These incidents highlight the ongoing vulnerabilities within the DeFi space and the need for enhanced security measures.
Sources
-
Loopscale recovers $2.8M after weekend DeFi hack and bounty talks, Cointelegraph.
-
Loopscale Recovers $2.8M After DeFi Hack Amid Bounty Talks, Coinspeaker.
This article was created with support from AI-driven technology, drawing on multiple reputable sources. The final content has been thoroughly reviewed and edited by BlockzHub's editorial team to ensure accuracy, clarity, and coherence. Original reporting sources are credited whenever appropriate and as required. The opinions expressed in this article do not necessarily represent the official views or positions of BlockzHub. This article is intended for informational purposes only and should not be considered financial or professional advice. Investing involves risk, and you should consult a qualified financial advisor before making any investment decisions.