Solana DeFi Project Loopscale Loses $5.8M in Hack

Solana-based DeFi project Loopscale faced a $5.8 million security breach on April 26, 2025, severely affecting its operations.

The incident highlights vulnerabilities in DeFi security, triggering a pause in lending operations and drawing widespread community concern over auditing integrity.

Loopscale Faces $5.8M Loss from Security Exploit

Loopscale, operating on Solana, recently encountered a $5.8 million loss due to a security exploit. The protocol had pivoted from NFT-based products to a lending focus, enhancing its footprint.

Co-founder Mary Gooneratne confirmed the breach stemmed from a collateral pricing flaw. Teams are investigating and have made user protection a top priority in their response.

“Our team is fully mobilized to investigate, recover funds, and ensure users are protected.” – Mary Gooneratne

USDC and SOL Value Decline Post-Hack

The breach led to a substantial drop in Loopscale’s total value locked, affecting market stability. Lending markets were strategically paused to prevent further damage as investigations continue.

The at-risk assets, USDC and SOL, face potential exposure. Immediate financial scrutiny has increased on Solana DeFi protocols, stressing improved auditing and security measures.

Solana’s DeFi Incidents Repeat Past Patterns

The exploit echoes past Solana DeFi incidents, like Saber, where $52M was lost. This pattern raises questions about the robustness of existing contract audits.

Repeated DeFi vulnerabilities underscore a need for stronger approaches, as portrayed by recent financial data. Experts advocate for real-time detection frameworks to bolster infrastructure.

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