TechFlow, April 27 — Loopscale, a lending protocol on the Solana blockchain, announced on its social media platform: "Loan repayment, deposits, and loop closure functions have been re-enabled. All other application features (including Vault withdrawals) remain temporarily restricted as we investigate and ensure this vulnerability is mitigated."
The root cause of this vulnerability has been identified as an isolated issue within Loopscale's collateral pricing mechanism based on RateX. RateX itself is unrelated to the incident. The financial loss directly affected depositors in the SOL and USDC Genesis Vaults.
We are currently investigating how this occurred, who was responsible, and the most effective methods for fund recovery.
We are actively collaborating with law enforcement and security professionals to resolve this issue as quickly as possible.
Updates regarding the specific impacts on users, the process for Vault withdrawals, and a full technical post-mortem will be released soon.
Previous report: The Loopscale protocol was hacked, resulting in the theft of approximately 5.7 million USDC and 1,200 SOL.
