Loopscale, a decentralized finance (DeFi) platform, is here to change that. The white hat hacker behind the recent exploit has already reached an agreement to return the stolen funds. The settlement follows Loopscale posting a whitehat bounty for the return of 90% of the stolen assets. The total value of assets stolen in the hack was $5.8 million at the time.
On April 26, Loopscale experienced a security incident. As a result of this attack, it lost approximately $5.7 million worth of USDC and 1,200 SOL from its vaults. The exploit was really a hack on Loopscale’s pricing model. Following this breach, Loopscale limited withdrawals from vaults and paused all market operations to prevent additional loss of funds.
On April 27, Loopscale contacted the hacker with an offer for a whitehat bounty agreement. They provided a 10% bounty, equaling 3,947 SOL. In exchange, the hacker would send back 90% of stolen assets, 35,527 SOL in total. Loopscale made an April 28 at 6 AM EST deadline for the hacker to accept their bounty.
The hacker responded on April 28 at 3:52 PM ET, agreeing to the terms of the bounty agreement. Loopscale verified the settlement, which is a promising development in the attempt to recoup the stolen funds.
Loopscale will share the wonderful news that vault withdrawals have resumed in the next few days. The company plans to release a comprehensive post-mortem report detailing the incident, the vulnerabilities exploited, and the measures taken to prevent future attacks.
The breach on Loopscale comes at a time of increasing security worries within the cryptocurrency industry. In the first quarter of this year alone, cryptocurrency hacks deleted more than $1.6 billion. This staggering loss points to the need for comprehensive security practices and robust proactive risk management across the DeFi ecosystem.
