Solana DeFi Protocol Loopscale Hacked for $5.8 Million Loss

# Solana-Based DeFi Protocol Loopscale Loses Over $5.8 Million in Hack Solana (SOL)-based decentralized finance (DeFi) protocol Loopscale has been hit by a devastating hack, resulting in the loss of over $5.8 million, as reported by Block Media. This amount constitutes about 12% of the protocol's total value locked (TVL). As of October 27, CryptoPolitan disclosed that Loopscale is actively investigating the breach and is working closely with law enforcement agencies and cybersecurity experts to identify the perpetrator and recover the stolen assets. The platform assured users that “the root cause of the attack lies in the collateral pricing issue within Loopscale’s RateX-based framework,” stressing that “RateX itself is not flawed.” The main victims were depositors in Solana (SOL) and the USDC Genesis Vault. # Details of the Attack The exploit centered on manipulating the RateX PT token pricing mechanism. The hacker successfully extracted 1,200 SOL and approximately $5.7 million in USDC. Post-incident, Loopscale temporarily halted market activities but resumed some functions like loan repayment, additional deposits, and loop termination within hours. However, certain features, such as vault withdrawals, remain suspended. # Surge in DeFi Hacks in 2023 The Loopscale hack is part of a troubling increase in DeFi-related cyberattacks this year. Earlier in the month, DeFi protocol KiloEX lost $7 million due to an oracle price manipulation exploit. In February, the Bybit exchange endured one of the largest hacks in history, losing an astounding $1.46 billion, an attack attributed to North Korea's Lazarus Group. During the first quarter of 2023, more than $1.6 billion was stolen from DeFi platforms, with nine attacks in February alone accounting for $1.53 billion in losses. This marks an 18-fold increase compared to the same period last year, highlighting the growing vulnerability of the DeFi sector to sophisticated cyberattacks.