How much was lost in the Loop X Network hack?

The Loop X Network hack resulted in $34K in losses on July 19, 2022.

What attack technique was used in the Loop X Network exploit?

The Loop X Network exploit utilized Rugpull. Understanding this attack vector is critical for smart contract auditors and developers building secure DeFi protocols.

How can developers prevent similar smart contract attacks?

Preventing smart contract hacks requires a combination of secure coding practices, thorough security audits, and understanding common attack vectors like reentrancy, oracle manipulation, and access control flaws. Smart Contract Hacking (SCH) provides hands-on training to help developers and auditors identify and prevent vulnerabilities before deployment.

Loop X Network Hack

TOTAL LOST $34K

Low Jul 19, 2022 Rugpull

Affected Chain 2022 Incident surface

Recovered - No recovery reported

All-Time Rank #1806 By amount stolen

Protocol Type Exit Scam/Rugpull Target category

Incident Overview

Quick Summary

The $LOOP token has been rugpulled by the token creator for a profit of roughly $33k.

Details of the Exploit

The creator of the token, deployed the contract in the BSC network, created a LOOP/BNB pair, where 100 $BNB were invested;

https://bscscan.com/tx/0x9ab5eeed…a42378

Immediately after the pair was created, the token creator sent $LOOP to other addresses that interacted with the pair by trading $LOOP on PancakeSwap. Example transfer transactions:

1) https://bscscan.com/tx/0xb78c9332…72ecf3

2) https://bscscan.com/tx/0x45021f96…1a8daf

3) https://bscscan.com/tx/0x4bee5c96…251afc

The addresses that received the tokens, after they made a profit from the exchanges, sent the tokens to the scammer address (B):

1) https://bscscan.com/tx/0x16642cf5…bbcb91

2) https://bscscan.com/tx/0x4a885d15…96ffd0

3) https://bscscan.com/tx/0xb363e7ae…e7cd18

4) https://bscscan.com/tx/0x2286ec7c…1ede5e

As the time of this writing information on this case is scarce. More sources will be added if the case should develop.

Block Data Reference

Involved addresses:

Token creator, scammer address(A): https://bscscan.com/address/0x26c7e7ec…d032ed

Scammer address (B): https://bscscan.com/address/0x26c7e7ec…d032ed

Transactions:

Withdrawing transaction through the BSC: Token Hub: https://bscscan.com/tx/0x2286ec7c…1ede5e

Cross chain package link: https://explorer.bnbchain.org/tx/52491A8ADE2F9FCD6D4B28726F041A9B3AFBCE99D45AB8B0DF2B3E765180CDEE

Incident Report

Protocol / Project Loop X Network

Date of Incident July 19, 2022

Attack Technique Rugpull

Classification Token

Protocol Information

Protocol Type Exit Scam/Rugpull

Affected Token LOOP

Team Anonymous

Source Code Verified On-Chain

What the Attacker Needed to Succeed

Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.

Technical Knowledge Deep understanding of rugpull and Solidity and EVM internals

Capital Required Seed capital to cover gas and initial position setup

On-Chain Access Ability to interact with smart contracts and deploy a custom exploit contract

Protocol Analysis Identification of the exploitable vulnerability in Loop X Network's contract logic - root cause: token

Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block

Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Hard to catch — private key / OpSec failures are outside smart contract audit scope

If you're auditing a protocol with similar architecture to Loop X Network, these are the critical security checks that could have prevented this incident (July 2022).

Verify all logic paths related to Rugpull are guarded by proper access controls and input validation
Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs

Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.

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Threat Assessment

Severity Level

LOW

Attack Vector Rugpull
Root Cause Token
Year 2022

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