Loopscale Pulls Off $2.8M Recovery Post-DeFi Hack—Bounty Hunters in Tow

DeFi protocol Loopscale claws back 80% of stolen funds after a brutal exploit—turns out even crypto thieves respond to negotiation tactics. White hats get paid, hackers walk (for now), and the blockchain keeps spinning its chaotic wheel of fortune.

Meanwhile, traditional finance bros still can’t figure out why anyone would trust code over a Goldman Sachs prospectus.

Loopscale’s Bounty Agreement

After the attack occurred, Loopscale posted on X that it was ready to reach a bounty agreement with the hacker. As part of the bounty agreement, the protocol disclosed that it would allow the attacker to retain 10% of the stolen funds if 90% was refunded.

If the hacker refused to agree, the stolen funds may be frozen, as the post further stated that the DeFi protocol was working with cyber security experts, exchanges and law enforcement agencies.

After the post, the DeFi platform stated on April 28 that they had “received a response from the exploiter,” showing willingness to send the loot back “in exchange for a bounty.”

At 3:52PM ET today, we received a response from the exploiter. They have indicated a willingness to return the exploited funds in exchange for a bounty.

We appreciate their engagement so far and we are actively working to reach an amicable resolution.

As such, we will be… https://t.co/znCZxtoi1z

— Loopscale (@LoopscaleLabs) April 28, 2025

Recently, another decentralized protocol, KiloEx, became a victim of an attack involving price manipulation. On April 15, the KiloEx exchange lost $7.5 million in a price oracle exploit, where the hacker manipulated the pricing oracles to acquire tokens at a drastically reduced price.

In response, KiloEx offered a 10% bounty, amounting to $750,000, for the return of 90% of the stolen funds. They also paused trading to prevent further damage and pledged to strengthen security measures.

The hacker eventually agreed to return the stolen funds in exchange for the bounty. KiloEx confirmed that they were monitoring the addresses involved in the attack and intended to freeze the stolen funds promptly. This breach serves as another stark reminder of the ongoing vulnerabilities in decentralized finance.

Loopscale Recoups $2.8M After DeFi Hack Amid Bounty Negotiations