Solana Crypto Project Loses Millions in Hack, Chaos Ensues!

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The exploit, oh the exploit! It targeted a peculiar market within the platform—like a thief sneaking through an unlocked window. This escapade was traced back to the not-so-fantastic way Loopscale priced RateX-based collateral, as revealed by a humble statement on X. Yes, the letter X. Who would’ve thought?

But wait! Before the hack, Loopscale, which once bore the noble name of Bridgesplit, decided to forsake its initial quest for NFT-based yield products and instead jump headfirst into the vast ocean of order book lending. This new venture was launched in April, much like a ship setting sail with a cargo of hope and no clear map. What could go wrong, right?

Now, unlike those traditional pool-based lenders such as Aave or Solend (how quaint), Loopscale had a grand vision: offering borrowers predictability and stability. What a refreshing change, they thought. Investors, including Solana Labs and the ever-glorious Coinbase Ventures, threw in a solid $4.25 million back in 2021, no doubt expecting their golden tickets to pay off handsomely. If only!

But oh, they did try. Loopscale underwent audits earlier this year—by OShield, no less—who identified some “critical vulnerabilities” (as one does when poking around in the dark corners of a crypto project). And lo and behold, they reportedly fixed them, leaving everyone in a state of serene optimism. Meanwhile, another audit by Sec3 was still in the works, like a distant cloud promising rain that never arrives. Classic.

Despite these valiant efforts, disaster struck! The hack—oh, the hack!—revealed some rather embarrassing flaws. In response, the team rushed to restrict some functions, like a man trying to stop a flood with a teaspoon. Later, they partially reopened the platform for repayments and top-ups—because that’s what you do when you’re knee-deep in a crisis, right?

Co-founder Mary Gooneratne, clearly holding the fort, announced the team was “fully mobilized” to investigate the breach and recover the stolen funds. A valiant effort indeed! Yet, in the world of DeFi chaos, the Loopscale fiasco is hardly an isolated event. It’s just one more name in the ever-growing list of 2025 DeFi hacks—along with Bybit’s $1.46 billion disaster and the exploits at KiloEX and Infini. Ah, the joys of digital finance!

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2025-04-27 09:08