Hackers behind $5.8M Loopscale hack agree to return funds in exchange for 10% bounty

exchange684 hours ago

0 1 2 minutes read

Decentralized finance platform Loopscale has reached an agreement with the hackers who exploited its system, securing the return of stolen funds in exchange for a bounty.

In an Apr. 28 post on X, Loopscale confirmed that the hacker behind its recent $5.8 million exploit had agreed to return the stolen funds in exchange for a 10% bounty. The platform thanked the hacker for being willing to settle the dispute amicably. In the upcoming days, they also promised to provide updates on the resumption of vault withdrawals and a comprehensive post-mortem of the incident.

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

The platform, which was hacked on Apr. 26, had its pricing system manipulated, leading to a loss of approximately $5.7 million in USD Coin (USDC) and 1,200 Solana (SOL) from its vaults. The hack was a result of a manipulation of Loopscale’s RateX PT token pricing, affecting depositors to the USDC and SOL vaults.

Loopscale restricted vault withdrawals and temporarily stopped all markets after the exploit while looking into the breach. The platform confirmed that there were no issues with the RateX collateral system itself and that the only people impacted were depositors to the USDC and SOL vaults.

Loopscale proposed a whitehat bounty agreement to the hacker on Apr. 27th, offering a 10% reward (3,947 SOL) in exchange for 90% of the stolen assets (35,527 SOL). The hacker would receive immunity from all legal repercussions in exchange.

The platform gave the hacker until Apr. 28 at 6 AM EST to reply. The hacker appears to have agreed to the deal, expressing a willingness to return the stolen funds and claim the bounty.

The Loopscale hack coincides with an increase in security concerns in the cryptocurrency industry. More than $1.6 billion was lost to cryptocurrency hacks in Q1 2025 alone, making it the worst quarter for security breaches to date. Several high-profile hacks have occurred in Q2 so far, including the $572,000 SIR.trading theft, the $5 million ZKSync exploit, and the $7 million KiloEx hack.