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Decentralized finance platform Loopscale has successfully negotiated an agreement with hackers responsible for a recent exploit, ensuring the return of stolen funds in exchange for a 10% bounty. The breach, which occurred on April 26, resulted in the loss of approximately $5.8 million in assets, including USD Coin (USDC) and Solana (SOL).

Details of the Exploit

The exploit targeted Loopscale’s RateX PT token pricing mechanism, allowing the hacker to manipulate the system and drain funds from the platform’s USDC and SOL vaults. This incident impacted depositors in these vaults, though Loopscale confirmed that its RateX collateral system remained secure.

In response to the breach, the platform took swift action by suspending vault withdrawals and halting all market operations to prevent further losses. Affected users were notified, and immediate investigations began to assess the full scope of the incident.

Negotiation and Resolution

On April 27, Loopscale offered a whitehat bounty agreement to the hacker. The proposal included a 10% reward—equivalent to 3,947 SOL—if the exploiter returned 90% of the stolen assets, totaling 35,527 SOL. The deal also promised immunity from legal action, encouraging the hacker to cooperate.

By April 28, the hacker agreed to the terms, indicating a willingness to return the funds. Loopscale acknowledged this development in a public statement, expressing gratitude for the amicable resolution. The platform also assured users that updates on vault withdrawals and a detailed post-mortem of the incident would be provided in the coming days.

Growing Security Concerns in DeFi

The Loopscale hack is part of a troubling trend in the cryptocurrency space. In the first quarter of 2025 alone, over $1.6 billion was lost to crypto-related security breaches, marking it as the worst quarter on record for such incidents. High-profile hacks have continued into Q2, including the $572,000 SIR.trading theft, the $5 million ZKSync exploit, and the $7 million KiloEx hack.

Key Security Tips for Crypto Investors

Given the rising number of exploits, it’s crucial for investors and users in the cryptocurrency space to stay vigilant. Here are some practical tips to enhance security:

  • Use hardware wallets to store your crypto assets securely.
  • Avoid sharing private keys or seed phrases with anyone.
  • Regularly monitor platform security updates and audits.
  • Invest only in projects with a proven track record and robust security measures.
  • Enable multi-factor authentication (MFA) on all accounts.

What’s Next for Loopscale?

As Loopscale works toward restoring normal operations, the platform’s commitment to transparency and security will likely play a key role in regaining user trust. The forthcoming post-mortem report will provide critical insights into the exploit and the measures being taken to prevent similar incidents in the future.

The incident underscores the importance of robust security practices in decentralized finance, a sector that continues to grow but remains a frequent target for malicious actors.

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