Loopscale Recovers Nearly $2.9M in Stolen Funds After Weekend Exploit

Decentralized finance protocol Loopscale has successfully retrieved almost half of the $5.7 million drained from its vaults during a major security breach on April 26. The recovery follows ongoing white-hat negotiations with the exploiter, which have shown significant progress recently.

In an April 29 post shared on X, Loopscale disclosed that approximately 19,463 Wrapped Solana (WSOL), valued at around $2.88 million, have been returned to its wallets since April 28. The returned assets came in three tranches: 10,000 WSOL ($660,000) and an earlier batch of 5,000 WSOL (~$740,000).

The platform said discussions with the attacker are advancing positively.

“Our pursuit of an amicable resolution regarding Saturday’s incident continues to make progress,”

Loopscale stated.

Loopscale had reached out to the hacker via an onchain message, offering a 10% bounty and immunity from legal consequences in exchange for returning 90% of the stolen funds. The team warned that it would involve law enforcement if there were no response within 24 hours.

By April 28, at 3:52 PM ET, the exploiter replied, expressing willingness to negotiate a settlement under the proposed bounty terms.

The exploit stemmed from the manipulation of Loopscale’s RateX PT token pricing function, allowing the attacker to siphon off around $5.7 million worth of assets, comprising 1,200 Solana (SOL) and a significant amount of USDC, from the platform’s vaults. While borrowers and loopers were unaffected, vault depositors bore the brunt of the loss, representing about 12% of Loopscale’s total funds.

This case adds to a growing list of partial fund recoveries in DeFi, a trend gaining traction as teams adopt proactive negotiation strategies post-exploit. Just a day prior, Ethereum-based lending platform Term Finance announced it had recovered $1 million of the $1.6 million lost in an Oracle misconfiguration exploit. That recovery included both internal recaptures and funds returned through discussions.

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