Loopscale pauses operations after weeklong API attack

Loopscale paused activity on November 5 after its APIs received more than 30,000 malicious requests a day over the preceding week, targeting the lending protocol’s SOL and USDC Genesis Vaults. The protocol said it had restored the affected vaults and that users’ deposits had not suffered losses. Loopscale said its security systems detected an escalation in the activity and that it suspended operations while investigating. The reported request volume and the account of deposit safety come from the protocol’s statements; the full scope and mechanics of the incident had not been established in the reporting. The pause affects protocol functions while the investigation and additional security work continue. Loopscale said it planned to restore its interface and repayment functionality, but had not given a timetable for resuming normal operations. It described repayments as a priority because borrowers could face unexpected liquidations if they could not manage outstanding loans during the suspension. The protocol said it had identified four addresses associated with the suspicious activity and was working with federal law enforcement and security professionals. It has not publicly...