Solana-Based Crypto Project Loses Millions After Recent Hack

Crypto

Solana-Based Crypto Project Loses Millions After Recent Hack

Loopscale, a decentralized finance project built on Solana, suffered a major security breach over the weekend, losing over $5.8 million — roughly 12% of its total value locked (TVL).

The exploit targeted a specific market within the platform and was traced back to an issue with how Loopscale priced RateX-based collateral, according to a statement on X.

Originally known as Bridgesplit, Loopscale pivoted from its early focus on NFT-based yield products to launching an order book lending platform in April.

Unlike typical pool-based lenders like Aave or Solend, Loopscales model aimed to offer borrowers more predictable rates and stability. Backed by investors including Solana Labs and Coinbase Ventures, the project raised $4.25 million back in 2021.

The platform had undergone audits by OShield earlier this year, which identified and reportedly fixed several critical vulnerabilities. Another review by Sec3 is still underway.

Despite these efforts, the recent attack exposed serious flaws, prompting the Loopscale team to restrict some platform functions before partially reopening them for repayments and top-ups later on Saturday.

Co-founder Mary Gooneratne said the team is fully mobilized to investigate the breach, recover stolen funds, and protect users. Meanwhile, the Loopscale incident joins a growing list of major DeFi hacks in 2025, including Bybits $1.46 billion loss and recent exploits at KiloEX and Infini.