Loopscale Recovers Stolen Funds After Successful Negotiation
Loopscale, a decentralized finance platform, has successfully recovered $5.8 million in stolen funds. The recovery came after a negotiation with the hacker who exploited a vulnerability in the platform’s pricing mechanism for RateX PT tokens.
The exploit occurred on April 26, allowing the attacker to drain 5.7 million USDC and 1,200 SOL from the USDC and solana vaults. Though, other users, including borrowers and loopers, were unaffected. Loopscale immediately halted its markets and contacted the hacker through an on-chain message.
Loopscale offered a 10% bounty, approximately 3,947 SOL, in exchange for the return of 90% of the stolen assets. The hacker responded positively within the 24-hour deadline. At 3:30 AM EST on April 28, the remaining 19,999 SOL was sent back to a Loopscale wallet, marking the full recovery of stolen funds.
Mary Gooneratne, co-founder of Loopscale, expressed gratitude for the support and help received from the ecosystem over the past 72 hours.”This resolution would not have been possible without the collaboration and efforts of so many others,” she said.
Loan repayments and loop closing were re-enabled shortly after the breach, but vault withdrawals remain paused pending further investigation. Loopscale has committed to releasing a full post-mortem in the coming days and praised the Solana and broader crypto community for their support.
