Loopscale revealed an agreement with the hacker behind its most recent $5.8 million exploit on X on April 28. The platform claims that in exchange for a 10% reward, the hacker consented to restore the majority of the money that was taken.
This agreement, which is sometimes called a “white-hat settlement,” gives the hacker a share of the money in exchange for finding flaws without being prosecuted.
Loopscale to Share Information on Vault Withdrawal
Loopscale thanked the hacker for settling the dispute amicably, preventing a protracted dispute or additional harm to the platform’s image.
Additionally, the platform told customers that it will soon release information about the restart of vault withdrawals, which had been stopped after the exploit.
Loopscale also promised to publish a thorough post-mortem report outlining the exploit’s methodology, the security holes it took advantage of, and the precautions being taken to avoid future occurrences of the same kind.
Although the settlement draws attention to the continued risks and vulnerabilities confronting decentralized finance (DeFi) platforms, it is also viewed as a calculated effort to swiftly recover user assets and preserve community trust.
Loopscale is anticipated to release further details in the days ahead.
Also Read: TRON Founder Justin Sun Unveils $50M Bounty to Recover Stolen TUSD Reserves
Loopscale Breach: What Had Happened?
On April 26, Loopscale was breached, causing approximately $5.7 million in USD Coin (USDC) and 1,200 Solana (SOL) to be stolen from its vaults.
The vulnerability was caused by a manipulation of the RateX PT token pricing mechanism on the platform. Both the USDC and SOL vaults had substantial amounts of money that the attacker was able to take advantage of by taking advantage of flaws in the way the platform priced these tokens.
Since Loopscale’s pricing model was not adequately protected against price manipulation techniques, the incident revealed serious flaws in it.
Consequently, many depositors experienced unanticipated losses. Since then, Loopscale has endeavoured to retrieve the pilfered money and pledged to provide a thorough post-mortem report that would explain the breach and list security enhancements to stop future assaults of this nature.
Loopscale’s Whitehat Offer?
Loopscale offered the hacker behind its most recent exploit a whitehat reward deal on April 27. According to the offer, the hacker would keep a 10% reward, or 3,947 SOL, as a bounty, and restore 90% of the stolen assets, or roughly 35,527 SOL.
Loopscale promised to shield the hacker from any legal action in exchange. The site gave the hacker till April 28 at 6 AM EST to reply. The hacker seemed to accept the offer shortly after, pledging to return most of the money that had been stolen and to receive the reward.
This settlement offers a comparatively quick conclusion to the well-known security issue by attempting to recover the majority of the lost assets without a drawn-out legal and operational battle.
Also Read: KiloEx Offers 10% Bounty to Hacker, Sets 72-Hour Deadline for Return of Stolen Funds