Loopscale pauses Solana lending protocol, citing sustained attack on Genesis Vaults
In brief
- Loopscale paused all activity on November 5, 2026, citing a sustained attack on its Genesis Vaults.
- No user deposits were lost and affected vaults were made whole, Loopscale says.
- More than 30,000 malicious API requests per day made up the campaign, according to Loopscale.
- Loopscale is working with federal law enforcement and has flagged four wallet addresses.
- The same Genesis Vaults lost about 5.7 million USDC and 1,211.4 SOL in an April 2025 exploit.
What Loopscale says happened
Loopscale said the campaign involved more than 30,000 malicious API requests per day over the prior week, as reported by Crypto Briefing. That's a steady stream of hostile traffic aimed at two vaults.
The protocol says it's working with federal law enforcement and that its team has identified four wallet addresses it associates with the attack. Operations will stay paused while the protocol runs further assessments, and Loopscale is weighing additional security hardening measures before it turns things back on. Until then, users can't lend, borrow or adjust positions the usual way.
This isn't the first time these vaults have been hit.
The April 2025 exploit
On April 26, 2025, an attacker drained approximately 5.7 million USDC and 1,211.4 SOL from the same Genesis Vaults, according to Crypto Briefing. That exploit worked by manipulating the pricing logic for RateX principal tokens. Loopscale paused operations then, too.
The 2025 story ended better than it started. The protocol recovered the drained funds and users didn't end up with net losses, while the team ran code reviews, published a post-mortem on the recovery, and switched protocol functions (repayments included) back on in stages after security reviews. Loopscale had launched publicly on April 10, 2025.
How the protocol works
Loopscale specializes in fixed-rate, overcollateralized loans. It doesn't pool everyone's liquidity into one bucket the way many defi lenders do; it uses an order book model that matches individual lenders and borrowers instead. Crypto Briefing puts the protocol's total value locked at roughly $85 million to $88 million.
Loopscale hasn't given a date for resuming operations.
Frequently asked questions
Did Loopscale users lose funds in the November 2026 attack?
According to Crypto Briefing, no user deposits were lost and the affected Genesis Vaults were made whole. Loopscale described the pause as a precautionary move rather than a reaction to a completed breach.
Can Loopscale users lend or borrow while the protocol is paused?
No. While the protocol is paused, users can't lend, borrow or adjust positions the usual way. Loopscale said operations will stay paused while it runs further assessments and weighs additional security hardening.
What happened in the April 2025 Loopscale exploit?
On April 26, 2025, an attacker drained approximately 5.7 million USDC and 1,211.4 SOL from the Genesis Vaults by manipulating the pricing logic for RateX principal tokens. Loopscale recovered the funds and users didn't end up with net losses.
