Loopscale, the Solana-based lending protocol, has paused operations after enduring a concentrated, week‑long campaign that flooded its APIs with more than 30,000 malicious requests per day targeting its SOL and USDC Genesis vaults. In a Nov. 5 update, the team said all user deposits remain secure, but it paused protocol activity immediately to limit further impact and begin a full security review. What happened - Loopscale’s security systems flagged a major escalation after sustained, sophisticated attacks focused on the protocol’s older Genesis vaults. The team says the affected vaults have been “made whole” and no users have lost funds, though it has not disclosed exact amounts impacted or detailed the attacker’s methods. - Normal lending operations will remain suspended while investigators determine the full scope of the incident and roll out additional protections. Loopscale plans to reopen its user interface soon and is prioritizing restoration of loan repayment functionality so borrowers can avoid unexpected liquidations. Why repayments matter - In DeFi lending, borrowers post crypto collateral to secure loans. If collateral falls below required levels, positions can be liquidated. Without repayment capability, borrowers may be unable to reduce outstanding debt and preserve collateral during market volatility—hence Loopscale’s urgency to restore repayments even before a full operational restart. Investigation and response - The protocol identified four addresses tied to the suspicious activity (two Solana addresses and two Ethereum‑format addresses) and says it is working with federal law enforcement and external security professionals. The team has not publicly named a suspect or specified which agencies are involved. - There’s no timetable for a full resumption of services; reopening the interface will not equal a full restart until the security review is complete. Context: a rocky security history - This latest incident follows a major April 2025 exploit in which an attacker manipulated the protocol’s token pricing for RateX principal tokens and withdrew roughly 5.7 million USDC and 1,200 SOL. Loopscale initially suspended markets and restricted withdrawals, then negotiated a recovery deal: the attacker accepted a roughly 10% whitehat bounty (about 3,947 SOL) in exchange for returning the remainder and immunity from legal action. By April 28, remaining funds were transferred back to a Loopscale‑controlled wallet and services were restored in stages (repayments and position‑closing reopened first; withdrawals stayed restricted). - The April 2025 breaches were part of a wave of DeFi incidents that month—CertiK later estimated $364 million in losses across hacks and scams during April 2025, with roughly $18.2 million recovered. - More recently, Premia Labs suffered a $464,600 exploit on Nov. 1, 2026, after an attacker used flash loans and options‑pool manipulation to drain collateral on Arbitrum, underscoring the persistent and evolving threat landscape in DeFi. Bottom line Loopscale says user funds are safe for now, but the protocol remains paused as the team investigates, coordinates with law enforcement, and prepares additional security measures. The platform aims to restore repayment functions quickly to protect borrowers, but a full timeline for reopening remains unclear. Read more AI-generated news on: https://app.chaingpt.org/news