Loopscale faced a major setback, losing approximately $5.8 million just two weeks after launching, due to a security flaw that allowed an attacker to exploit undercollateralized loans. Co-founder Mary Gooneratne explained that the breach involved an issue with collateral pricing linked to RateX, a third-party service that remained uncompromised. The hack impacted 12% of Loopscale’s Total Value Locked (around $40 million). In response, Loopscale paused lending markets and is investigating the breach, offering a 10% bounty for the return of stolen funds. The incident highlights ongoing security challenges in the DeFi sector.
Loopscale Exploit: $5.8M Vanishes in Latest DeFi Security Breach
