Hackers Steal $7 Million From Loopscale and Term Finance DeFi Protocols

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Ah, the world of decentralized finance (DeFi)—so secure, so promising, yet somehow it keeps getting robbed. This weekend, two protocols—Loopscale and Term Finance—were hit hard, losing a combined total of over $7 million. Seems like the hackers are having a field day while the DeFi sector tries to keep its pants on. 🙄

Clearly, the vulnerabilities in DeFi are becoming a hot topic in 2025. Who would’ve thought, right?

Loopscale Loses $5.8 Million in Major Exploit

On April 26, the Solana-based Loopscale reported a major security breach that impacted its USDC and SOL vaults. Can’t say we didn’t see this coming, right?

The exploit drained around $5.8 million—about 12% of the platform’s total value. And just two weeks after Loopscale’s grand debut? Really, the timing couldn’t have been more perfect. 👏

Mary Gooneratne, the co-founder of Loopscale, confirmed that the attacker secured under-collateralized loans to carry out the heist. You know, the usual… stealing from the rich, or in this case, the platform’s vaults.

Upon investigation, it was revealed that the root cause stemmed from a glitch in Loopscale’s RateX-based collateral pricing system. But don’t worry—RateX itself wasn’t compromised. It was just… well, one part of the system that decided to take a nap.

“The root cause of the exploit has been identified as an isolated issue with Loopscale’s pricing of RateX-based collateral. There is no issue with RateX itself related to this. Loss of funds explicitly affects depositors to SOL and USDC Genesis vaults,” Loopscale stated.

Do DeFi returns really outweigh the risks, especially when you factor in all these hack-related losses?

“How safe is actually all this defi? We are chasing yield, but hack-adjusted is it actually better than just holding bonds?” Haldorsson questioned.

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2025-04-27 18:27