Loopscale Resumes Withdrawals After Recovering 100% of Stolen Funds

Loopscale, a lending protocol within the Solana ecosystem, has announced that it will resume withdrawals following a security breach that occurred last month. The protocol, which was exploited due to a security vulnerability, will allow users to withdraw their funds starting from May 9 at 10:00 AM EDT (May 9 at 10:00 PM Beijing Time).

Despite the protocol update patch having passed an audit, initial withdrawals will be subject to a 24-hour limit per user. SOL depositors can withdraw up to 2500 SOL every 24 hours, while USDC and USDG users can withdraw up to 500,000 USDC/USDG every 24 hours. Additionally, jitoSOL users can withdraw up to 500 jitoSOL every 24 hours.

The security breach, which occurred last month, resulted in the theft of approximately 5.7 million USDC and 1200 SOL. However, through negotiations with the hacker, all the lost funds have been fully recovered. This recovery is a significant development for the protocol, as it ensures that users will not suffer financial losses due to the security incident.

The resumption of withdrawals is a crucial step for Loopscale as it works to regain the trust of its users and the broader Solana community. The protocol's ability to recover the stolen funds and implement necessary security measures demonstrates its commitment to protecting user assets and maintaining the integrity of its platform.

Moving forward, Loopscale will need to continue to prioritize security and transparency to prevent future incidents and ensure the safety of user funds. The protocol's response to the security breach serves as a reminder of the importance of robust security measures in the decentralized finance (DeFi) space, where the safety of user assets is paramount.