Loopscale Hack: $5.8M Returned After Whitehat Agreement

Loopscale Hacker Agrees to Return Funds for 10% Bounty

On Apr. 28, Loopscale shared on X that the hacker behind its $5.8 million exploit agreed to return most of the stolen funds. In exchange, the hacker would keep 10% as a bounty. Loopscale thanked the hacker for choosing to settle the issue peacefully. They also promised users that updates would be shared soon. These updates would cover the reopening of vault withdrawals and a full post-mortem explaining how the breach happened.

Source: X

The hack took place on Apr. 26. It targeted the platform’s pricing system. By manipulating the price of the RateX PT token, the hacker caused major losses. About $5.7 million in USD Coin and 1,200 Solana were drained from Loopscale’s vaults. The problem affected users who deposited money in the USDC and SOL vaults. No other parts of the platform were impacted. Loopscale acted quickly by restricting vault withdrawals and pausing all markets to investigate. They later confirmed that the RateX collateral system stayed secure. Only the pricing system tied to USDC and SOL vaults was exploited.

On Apr. 27, Loopscale reached out to the hacker with a proposal. They offered a 10% bounty, which equaled around 3,947 SOL, in exchange for the return of 90% of the stolen assets, about 35,527 SOL. To make the offer more attractive, Loopscale promised that they would not pursue any legal action if the hacker agreed. They set a deadline of Apr. 28, 6 AM EST, for a reply. The hacker accepted the offer before the deadline. They agreed to return the stolen funds and claim the bounty.

Even though the deal with the hacker reduced the losses, users were still left waiting. Vault withdrawals remained restricted after the agreement. Many users have been asking when they will be able to access their funds again. Loopscale said they would share a detailed plan soon. They promised a full report explaining what went wrong and what steps would be taken to prevent future incidents. This transparency will be important to rebuild trust with their community.

Crypto Security Concerns Continue to Grow

The Loopscale incident is not isolated. Crypto platforms have seen a surge in security problems this year. In Q1 2025, more than $1.6 billion was lost to hacks, setting a new record for losses in a single quarter. The trend has continued into Q2. Several big hacks have already happened, including the $572,000 theft from SIR.trading, the $5 million ZKSync exploit, and the $7 million KiloEx hack. These events show that security remains a major challenge for the entire crypto industry.

Source: X

Settling with the hacker helped Loopscale recover some of the lost funds quickly. However, the real test will be how they improve their systems moving forward. Users will expect stronger security measures. They will also expect honest communication. The upcoming post-mortem will play a key role in setting the tone for Loopscale’s future. Many in the crypto world will be watching closely to see how Loopscale handles the aftermath of the hack.