Overview
- Loopscale announced the precautionary pause on Thursday after detecting a sustained campaign that sent more than 30,000 malicious API requests per day to its Genesis vaults.
- The attacks focused on the SOL and USDC Genesis vaults, which the team says have been made whole and did not cause any loss of user deposits.
- Loopscale has identified four wallet addresses associated with the activity and said it is working with federal law enforcement and external security professionals to investigate.
- The protocol plans to reopen its user interface and restore loan repayment functionality first so borrowers can reduce debt and avoid liquidations while broader operations remain suspended for further hardening.
- The incident echoes an April 26, 2025 exploit of the same Genesis vaults that drained about $5.7 million in USDC and 1,200 SOL but was later recovered, and it highlights ongoing DeFi risks around token pricing, API exposure, and the need for repeated security reviews.