Did I exchange my fat for muscle? Why does it say I'm this weight?

Shyoutgoing
I'm very petite at 5'2" but I have a voluptuous build with wide hips, small waist and broader shoulders. I've lost a lot of weight, I used to be really overweight about a year and a half ago, since then it looks like I've lost about 60lbs. I had no strength at all to me before, I had never exercised. Now I'm doing arm exercises with 25lb, squatting 45lbs, doing crunches and planks too. You can see and feel my muscles under a small layer of fat that will soon be gone.

My my question is, I recently went on the scale and it said I was only about 10lbs weight difference as to when I was overweight. I'm no where near how I looked before, I was all soft and fat, now my waist is super tight and muscular legs and arms. Why does it say I'm close to the weight I was before? Is it because I exchanged the fat for muscle?
Did I exchange my fat for muscle? Why does it say I'm this weight?
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