Solana-based lending protocol Loopscale has temporarily suspended operations after a sustained campaign of malicious requests against its SOL and USDC vaults. The team says user deposits remain safe and affected vaults have been made whole. Loopscale has not said how much money the attack touched.
Loopscale paused protocol activity after its APIs received more than 30,000 malicious requests per day over the past week. In a November 5 statement, the team said its security systems detected a significant escalation in the attacks.
Loopscale described the campaign as the work of a sophisticated actor. The attempts targeted its SOL and USDC Genesis Vaults, which hold assets deposited by users of the lending platform.
Team says no users lost funds
A Loopscale team member said on Discord that the incident was a targeted campaign against the older Genesis vaults. The team added that the affected vaults had been made whole and no users had incurred losses. However, Loopscale has not disclosed the amount of funds affected or how the attacker tried to compromise the vaults.
The protocol identified four addresses linked to the suspicious activity, including two Solana addresses and two in Ethereum-compatible format. It is working with federal law enforcement and security professionals, but has not named the suspected attacker or the agencies involved.
Repayments are a priority
Loopscale intends to reopen its user interface shortly and is working to restore loan repayments as quickly as possible. The team said repayments matter because borrowers could otherwise face unexpected liquidations while normal lending operations remain unavailable.
In decentralized lending, borrowers typically post crypto as collateral for loans. If its value falls below the required threshold, their positions can become eligible for liquidation.
Loopscale has not given a timetable for these services. Reopening the interface will not amount to a full resumption, which depends on completing its security review.
Incident follows April 2025 exploit
The attack follows an April 2025 breach in which Loopscale lost approximately $5.8 million after an attacker exploited a weakness in its token pricing mechanism. The team later reached an agreement with the attacker, who accepted a 10% whitehat bounty in exchange for returning the remaining funds.
By April 28, the remaining 19,999 SOL had been transferred back to a Loopscale-controlled wallet, completing the recovery of the stolen assets.
Source: crypto.news
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