Loopscale Labs Suffers $5.7 Million Loss from Oracle Exploit
Loopscale Labs experienced a significant security breach, resulting in the theft of approximately $5.7 million in USDC and 1,200 SOL, amounting to about 12% of its total assets.
The exploit occurred due to manipulation of Loopscale's pricing functions, specifically impacting the RateX Principal Tokens (PT). Key points include:
- Loopscale launched two weeks prior to the incident.
- Attackers manipulated oracle price data, allowing under-collateralized loans.
- RateX confirmed there were no vulnerabilities in its protocol.
- Loopscale halted all market functions immediately upon detection of the exploit.
- Positive community response to Loopscale’s crisis management and transparency.
- Negotiations with the attacker are ongoing for a potential fund recovery.
- A partial return of stolen funds is anticipated, with a structured plan for resuming vault withdrawals in development.
Loopscale has committed to providing users with updates on recovery efforts.