Loopscale suspends protocol after 30,000 daily API attacks, restores user vaults

Loopscale, a decentralized finance protocol on the Solana network, suspended its operations after facing a significant security breach involving sustained API attacks and a collateral-pricing exploit in its Genesis Vaults. Over the past week, Loopscale reported more than 30,000 malicious API requests daily, attributing these to a sophisticated attack campaign. The protocol responded by halting all services to contain the threat and initiated an internal investigation into the security incident. The attackers specifically targeted Loopscale’s SOL and USDC Genesis Vaults, which resulted in the protocol’s rapid decision to pause user activity. Loopscale emphasized that all deposited user funds were secured throughout the suspension period. Researchers traced the incident to an exploit involving kySOL, a liquid staking token.

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