Solana’s Loopscale Faces $6M DeFi Security Breach
On April 26, 2025, Solana-based DeFi protocol Loopscale experienced a significant security breach, resulting in the loss of nearly $5.8 million, approximately 12% of its total value locked.
The incident highlights vulnerabilities in newly launched DeFi protocols and its potential impact on market trust, emphasizing the need for robust security measures.
Loopscale Loses $5.8 Million in Security Breach
Loopscale, a new Solana-based DeFi platform, faced a major security breach on April 26, 2025. The breach led to the loss of nearly $5.8 million, impacting 12% of its total value. Co-founder Mary Gooneratne confirmed ongoing investigations. The team is collaborating with law enforcement to recover stolen funds and enhance security measures. “The team is fully mobilized to investigate the breach, recover the stolen funds, and implement measures to enhance user protections,” Gooneratne assured users. Certain app functions remain restricted during this period.
12% Drop in Total Value Locked at Loopscale
Following the breach, Loopscale’s total value locked dropped by 12%, adversely affecting its financial standing. The incident reflects broader security challenges facing emerging DeFi protocols. Potential financial outcomes may involve a prolonged impact on user trust. History demonstrates such incidents can negatively influence market activity, underscoring the need for enhanced DeFi security strategies.
Past DeFi Breaches Echo Current Challenges
Previous DeFi breaches, like the $7 million KiloEX oracle exploit, underscore a recurring theme of vulnerabilities in new platforms. These incidents contribute to broader concerns about DeFi security. Experts at Kanalcoin suggest potential recovery through robust audit processes and tightened security protocols. Analyzing past occurrences indicates that proactive measures are essential to restore user confidence.
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The post Solana’s Loopscale Faces $6M DeFi Security Breach appeared first on Kanalcoin.
Filed under: News - @ April 28, 2025 2:29 am