Loopscale Suffers $5.8 Million Exploit Two Weeks After Launch

Loopscale, a Solana-based lending protocol that launched just two weeks ago, suffered an exploit worth $5.8 million on Saturday. The attacker made off with roughly 5.7 million USDC and 1,200 SOL through undercollateralized loans tied to RateX-based collateral pricing.

The team temporarily disabled withdrawals, loan repayments, and other key features to prevent further losses. Some functions like repayments have since been re-enabled, but vault withdrawals and new deposits remain suspended due to the ongoing investigation.

Loopscale's total value locked (TVL) was around $40 million before the incident, with about 12% impacted by the exploit. The team is working with law enforcement agencies to investigate the breach and recover any potential funds.