In an unusual turn following a major crypto exploit, decentralized finance (DeFi platform) Loopscale has successfully negotiated with the individual behind a $5.8 million security breach, arranging the return of most assets for a reward.
Loopscale announced via social media on April 28 that the exploiter agreed to send back 90% of the pilfered digital funds. In return, they will retain 10% as a “white hat” bounty, a practice becoming more common as platforms seek to mitigate losses after attacks.
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The platform expressed appreciation for the cooperative resolution and stated plans to share a detailed incident report and resume vault withdrawals soon. This follows the initial attack on April 26, where manipulators targeted Loopscale’s pricing mechanism.
The exploit specifically impacted the RateX PT token pricing, draining approximately $5.7 million in USD Coin (USDC) and 1,200 Solana (SOL) tokens from deposit vaults. Loopscale quickly halted market activities and withdrawals to investigate, confirming the core RateX collateral system remained secure.
On April 27, Loopscale formally proposed the bounty deal, offering 3,947 SOL (10%) for the return of 35,527 SOL (90%), along with immunity from legal action. The attacker accepted the terms before the April 28 deadline.
This resolution occurs amidst heightened security challenges in the blockchain space. The first quarter of 2025 saw over $1.6 billion lost to crypto hacks and exploits, marking a record high. Recent incidents include significant thefts from ZKSync ($5 million), KiloEx ($7 million), and SIR.trading ($572,000), underscoring the persistent threats facing the DeFi sector.