Solana Loopscale Suffers $5.8M Hack — Lending Services Halted

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According to Solana Loopscale’s recent statement, the platform has stopped its lending services because of a major hack that happened on April 26, 2025. On Saturday, Loopscale’s co-founder, Mary Gooneratne, revealed the news about the major exploit on the platform’s official X account.

In this attack, $5.8 million was stolen, which included USDC 5.7 million and 1,200 SOL from Solana’s Loopscale vaults. The platform has started to bring back some of its features, but as the team is investigating the incident, only limited functions are available.

Solana’s Loopscale Hit by $5.8M Exploit

According to the Co-founder of Solana Loopscale, Mary Gooneratne, this hack happened because the platform’s Ratex-based collateral pricing system was weak. This allowed attackers to take advantage of undercollateralized loans and steal funds from the platform’s vaults of USDC and SOL.

Gooneratne gave updates on the platform’s efforts to fix the issue; he wrote on X that we are working hard to investigate, recover the stolen funds, and make sure that our users are safe.

Though Solana Loopscale has re-enabled some functions like loan repayment, adding collateral, and closing loops, it has still disabled its important features, like vault withdrawals, as the team is continuing its investigation.

Investigation and User Protection at Solana Loopscale

After the exploit, Loopscale joined forces with law enforcement and cybersecurity experts to find the hackers and recover the stolen funds.

The platform has assured its users that borrower accounts were not affected, and they are staying focused on protecting users’ funds while the investigation continues.

This incident shows the risk in the DeFi space, particularly due to the complexity of the collateral pricing system and due to weaknesses in smart contracts.

Security experts pointed out that the increasing number of attacks on DeFi protocols in 2025 shows a bigger problem in them; therefore, there are more than 1.6 billion in crypto losses reported in just the first quarter.

Solana’s Price Fluctuations Following Loopscale Hack

On April 25, 2025, a day before Loopscale’s recent major hack, Solana was seen trading above $149. According to CoinMarketCap data, on the day of the exploit on April 26, 2025, SOL saw the price drop from its previous day’s high of $155 to a low of $148.

Later, on the following day, that is, on April 27 and 28, Solana saw a consecutive price drop to $147 and $146, and even today, it saw a deep around $145.

Currently, Solana is trading above $150. The present value is approximately $151.40 with a 24-hour trading volume of $ 2.37 B. According to Binance, the recent Loopscale hack has not severely impacted the Solana price, even though the coin experienced a relatively small price drop

Solana price scenario regarding the Loopscale hack

Date	Event	SOL Price (USD)
April 25, 2025	Before the Loopscale hack	Above $149, high $155
April 26, 2025	On the Loopscale hack date	Low $148
April 27- April 28	After hack	$147, $146
Current Price	After hack	$151.40

Impact on Solana and DeFi Markets

Though it was a major hack, it did not affect Solana’s token, SOL. On April 27, 2025, it was trading at $148.36 and had decreased by just 0.61%. Although the hack did not cause a significant change in the market, it highlighted concerns about the security of DeFi platforms, such as Solana’s Loopscale.

Before the hack, Solana Loopscale had gained a lot of attention for its unique lending system, which directly connects lenders and borrowers. However, after the hack, Loopscale has faced increased pressure to improve its security and to regain its users’ trust.

Conclusion

Solana Loopscale is working to improve its security after the hack and is focusing on protecting its users’ funds. This incident gave rise to concerns, but the platform has quickly responded and shown its dedication to protecting users. It will be important to see how the platform will handle this situation as it will play a key role in the future of Decentralised Finance.