Solana-based crypto lending platform Loopscale via X has officially announced it will resume withdrawals starting at 10:00 PM Eastern Time on May 9.
The development comes one month after the platform was targeted in a major security breach that saw hackers steal approximately $5.7 million in USDC and 1,200 SOL.
The incident, which stemmed from a vulnerability in the protocol’s smart contract system, prompted the temporary suspension of withdrawals as the team worked to patch the flaw and secure user assets.
With a fully audited update now in place, Loopscale is taking a cautious approach as it reopens the platform to users.
Withdrawals to Be Gradually Reintroduced With Daily Limits
Although operations will resume, Loopscale has announced that withdrawals will be limited in the initial phase to prevent sudden liquidity imbalances and to ensure platform stability.
Specifically, users who deposited in SOL will be able to withdraw up to 2,500 SOL per day, while USDC and USDG holders will have a maximum withdrawal cap of 500,000 USDC/USDG per 24-hour period.
Additionally, jitoSOL holders will be allowed to withdraw up to 500 jitoSOL daily.
These limits are expected to remain in place during the early stages of reactivation, providing a controlled environment while the protocol regains full functionality and user trust.
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Full Fund Recovery Marks a Rare Win in Crypto Security
In a rare turn of events for the crypto world, Loopscale was able to recover all the stolen funds after engaging in negotiations with the hackers responsible for the exploit.
The platform has not disclosed the specific terms of the negotiation, but the successful recovery of all 5.7 million USDC and 1,200 SOL has been confirmed.
The outcome sets Loopscale apart from many other hacked platforms that often suffer permanent losses or partial restitution at best.
The recovery effort, paired with a third-party audit of the new security patch, demonstrates the project’s commitment to safeguarding user assets and restoring platform credibility.
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Community Confidence Hinges on Transparent Relaunch and Security
As Loopscale reopens, all eyes are on how it manages the post-recovery phase. While the return of user funds is a major relief, the incident has left lingering questions about the platform’s risk management practices and long-term resilience.
Community members and investors are expected to closely monitor the protocol’s operations, particularly how it handles withdrawals and communicates future security updates.
Transparency, robust technical infrastructure, and clear user engagement will be critical as Loopscale attempts to reestablish its position within the Solana ecosystem and regain user confidence in a highly competitive DeFi landscape.
The Incident Amidst a Broader Surge in Crypto Hacks
The Loopscale incident occurred in the context of a troubling trend across the crypto sector.
April 2025 alone witnessed a staggering 1,163% increase in crypto-related thefts compared to March, totaling $364 million in losses.
A single Bitcoin hack valued at over $330 million accounted for the majority of the damage. So far, white hat hackers have managed to return $18.2 million of the stolen assets.
These developments bring the cumulative total of crypto thefts to a staggering $11.35 billion, with $6.4 billion stemming from DeFi protocols, highlighting persistent vulnerabilities across decentralized finance platforms.
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