Incident Overview
On April 26, 2025, Loopscale was exploited due to a pricing system vulnerability, resulting in the loss of approximately 39,474 SOL (~$5.8M), though over $2.8M has since been returned.
The attacker exploited a flaw in Loopscale’s pricing mechanism, enabling them to manipulate loan conditions and extract funds from the SOL and USDC Genesis Vaults. In response, the Loopscale team temporarily suspended most app functions while investigating the breach and coordinating with security partners and law enforcement. A message was sent directly to the exploiter, offering a whitehat agreement: return 90% of the stolen funds (35,527 SOL) in exchange for keeping a 10% bounty (3,947 SOL) and exemption from liability.
As of April 27, the exploiter returned a total of 19,463 WSOL (~$2.88M), with funds delivered across multiple transactions. Law enforcement, exchanges, and bridge protocols have been alerted, and further legal steps are pending if no agreement is reached. A full post-mortem is in progress.
Incident Report
Protocol Information
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.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Loopscale, these are the critical security checks that could have prevented this incident (April 2025).
- Verify all logic paths related to Price Oracle Manipulation / Other are guarded by proper access controls and input validation - see the Oracle Manipulation & Price Manipulation attack class for patterns
- Audit oracle price feeds for manipulation risks - ensure time-weighted average prices (TWAPs) or multi-source aggregators are used, not spot prices
- 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.
Free TrialFunds Recovery
Recovered
$2.9M
Net Loss
2917400
Security Audit History
- Audit Report 1 Report
Related Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
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