- Loopscale Hacker who stole $5.8 million in crypto assets has initiated negotiations to return the funds in exchange for a bounty.
- The attacker requested a 20% bounty and demonstrated good faith by promising to return 5,000 wSOL immediately.
- The April 26 exploit affected approximately 12% of Loopscale’s total value locked, prompting a temporary pause in certain protocol functions.
Loopscale, a Solana-based DeFi protocol, has confirmed that negotiations are underway with the hacker responsible for stealing $5.8 million in cryptocurrency assets. The attacker, who took approximately 5.7 million USDC and 1,200 Solana tokens from two yield vaults on April 26, has expressed willingness to return the stolen funds in exchange for a bounty payment.
On April 27, the hacker communicated through the Etherscan blockchain scanner, proposing terms for the return of the stolen assets. “We are agreeable to collaborating with you to reach a white hat agreement. However, we would like to negotiate the bounty percentage; our expectation is 20%,” the message read, as shared by Loopscale on X. The hacker added that they would immediately return 5,000 wSOL funds to demonstrate commitment to cooperation.
Impact and Response
According to Mary Gooneratne, co-founder of Loopscale, the breach only affected the protocol’s USDC and SOL vaults, with losses representing approximately 12% of its total value locked. Following the attack, Loopscale took immediate action by temporarily halting lending operations, but has since announced that it has “re-enabled loan repayments, top-ups, and loop closing.”
“All other app functions (including Vault withdrawals) are still temporarily restricted while we investigate and ensure mitigation of this exploit,” Loopscale stated in a post on X. The protocol continues to monitor the situation as negotiations with the hacker proceed on Etherscan’s public messaging platform.
About Loopscale
Launched just weeks ago on April 10, Loopscale is a relatively new decentralized finance lending protocol designed to enhance capital efficiency through direct matching between lenders and borrowers. The platform also supports specialized lending markets including structured credit, receivables financing, and undercollateralized lending, according to information shared with Cointelegraph.
The incident highlights an ongoing trend in Web3 security breaches, where protocols frequently offer bounties to Hackers in exchange for returning stolen funds. However, industry data indicates that only a small fraction of the more than $1.6 billion in cryptocurrency stolen during the first quarter of 2025 has been successfully recovered through such negotiations.
As discussions continue between Loopscale and the attacker, the protocol is working to restore full functionality while ensuring security for its users.
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