Loopscale recovers $2.8M after a DeFi hack, negotiating with the attacker for the return of more funds through a bounty program.
Loopscale is one of the latest decentralized finance platforms to fall victim to an exploitation, resulting in a $5.7 million loss. The attackers manipulated the RateX PT token pricing, enabling them to steal from its USDC and SOL vaults.
The hack occurred over the weekend, and Loopscale has since disclosed that, after negotiating with the hacker, it has recovered about half of the stolen funds, with more expected to follow.
By April 29, Loopscale had reclaimed approximately 10,000 WSOL in the morning and an additional 4,463 SOL in the afternoon, valued at around $1.48 million and $660K, respectively.
This comes after the recovery of 5,000 WSOL worth about $740K the previous day. The platform remains optimistic about recovering more funds and has committed to keeping users updated on the progress.
Our pursuit of an amicable resolution regarding Saturday's incident continues to make progress. As an update to our users:
• At 2:19AM ET this morning, ~10,000 WSOL (~$1.48M) was returned to a Loopscale wallet.
• At 3:14PM ET this afternoon, another 4,463 (~$660K) WSOL was… https://t.co/sq4FtACBNi— Loopscale (@LoopscaleLabs) April 29, 2025
Loopscale’s Bounty Agreement
After the attack occurred, Loopscale posted on X that it was ready to reach a bounty agreement with the hacker. As part of the bounty agreement, the protocol disclosed that it would allow the attacker to retain 10% of the stolen funds if 90% was refunded.
If the hacker refused to agree, the stolen funds may be frozen, as the post further stated that the DeFi protocol was working with cyber security experts, exchanges and law enforcement agencies.
After the post, the DeFi platform stated on April 28 that they had “received a response from the exploiter,” showing willingness to send the loot back “in exchange for a bounty.”
At 3:52PM ET today, we received a response from the exploiter. They have indicated a willingness to return the exploited funds in exchange for a bounty.
We appreciate their engagement so far and we are actively working to reach an amicable resolution.
As such, we will be… https://t.co/znCZxtoi1z
— Loopscale (@LoopscaleLabs) April 28, 2025
Recently, another decentralized protocol, KiloEx, became a victim of an attack involving price manipulation. On April 15, the KiloEx exchange lost $7.5 million in a price oracle exploit, where the hacker manipulated the pricing oracles to acquire tokens at a drastically reduced price.
In response, KiloEx offered a 10% bounty, amounting to $750,000, for the return of 90% of the stolen funds. They also paused trading to prevent further damage and pledged to strengthen security measures.
The hacker eventually agreed to return the stolen funds in exchange for the bounty. KiloEx confirmed that they were monitoring the addresses involved in the attack and intended to freeze the stolen funds promptly. This breach serves as another stark reminder of the ongoing vulnerabilities in decentralized finance.
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