Solana’s Loopscale Suffers $5.7 Million Exploit in USDC and SOL Vaults

Loopscale, a Solana-based lending protocol, reported manipulation of its RateX PT token pricing at 11:30 AM EST, resulting in a loss of approximately 5.7 million USDC and 1,200 SOL from its vaults. The breach underscores a pattern in DeFi hacks exploiting oracle vulnerabilities, affecting 12% of Loopscale’s total holdings. The platform halted markets, aiming to prevent further losses and restore critical functions.

Measures are in place to restore repayment functions promptly to prevent unforeseen liquidations. A comprehensive investigation is underway with law enforcement and security experts. The team, led by co-founder Mary Gooneratne, has reiterated its commitment to transparency and fund recovery efforts. Stakeholders express concern over the potential ripple effects on user trust and DeFi stability.
Details of the Exploit

Loopscale’s team identified a manipulation within the pricing functions of the RateX PT token, causing an estimated 5.7 million USDC and 1,200 SOL to be stolen. The funds represent about 12% of Loopscale’s total funds. All Loopscale markets have been suspended for detailed investigation. The vulnerability primarily affects depositors in USDC and SOL vaults, leaving borrowers and revolving loan users unaffected.