Loopscale halts operations after major attack, funds safe
6.7 Security Loopscale halted operations after a major attack on its Genesis Vaults. No user funds were lost, affected vaults were restored, and security upgrades are ongoing.
Loopscale, a decentralized lending protocol on the Solana blockchain, has suspended all operations after enduring a week-long, sophisticated attack targeting its SOL and USDC Genesis Vaults. The protocol faced over 30,000 malicious API requests daily, prompting an immediate halt to services to prevent further damage. Despite the scale of the attack, Loopscale confirmed that no user deposits were lost and that the affected vaults have been fully restored. Investigations revealed that attackers exploited a collateral-pricing vulnerability involving the kySOL token, allowing them to borrow thousands of SOL using artificially inflated collateral values. Loopscale has identified four wallet addresses linked to the exploit and is working closely with federal law enforcement and security experts. Operations will remain paused as the team conducts further assessments and implements enhanced security measures. The incident has raised concerns about DeFi security on Solana, with the community closely monitoring Loopscale’s response.
