The post Loopscale and Term Finance Suffer Over $7 million in DeFi Exploits appeared on BitcoinEthereumNews.com.

The decentralized finance (DeFi) sector faced another major setback this weekend as two protocols, Loopscale and Term Finance, suffered exploits totaling over $7 million in losses. These incidents have fueled growing concerns about the vulnerabilities of DeFi platforms in 2025. Loopscale Loses $5.8 Million in Major Exploit On April 26, Solana-based Loopscale reported a significant security breach impacting its USDC and SOL vaults. The exploit drained around $5.8 million, representing roughly 12% of the platform’s total value. Notably, this attack came just two weeks after Loopscale’s official launch. Loopscale’s co-founder, Mary Gooneratne, confirmed that an attacker exploited the system by securing under-collateralized loans. Investigations revealed that the root cause stemmed from an isolated issue in the platform’s RateX-based collateral pricing system. However, Loopscale clarified that RateX itself was not compromised. “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. Following the breach, Loopscale temporarily halted all markets to assess the damage. The platform has since resumed partial operations, enabling key functions like loan repayments, top-ups, and loop closures, while vault withdrawals remain restricted. To recover the stolen funds, Loopscale offered a 10% bounty to the attacker and proposed a whitehat agreement. The platform requested the return of 90% of the stolen assets and warned of legal action if the attacker did not respond by April 28. “We agree to allow you to retain a bounty of 10% of the funds (3,947 SOL) and release you from any and all liability regarding the attack,” Loopscale added. Loopscale is currently working with security firms and law enforcement agencies to manage the situation. Term Finance Suffers $1.5 Million Liquidation…

---

Filed under: News - @ April 27, 2025 3:27 pm