Loopring's "Secureest" Wallet Hacked, $5 Million Stolen!

Bittime - Loopring, the Ethereum-based zkEVM protocol that dominates the market with its “safest on Ethereum” smart wallet, has just experienced a hack targeting their ‘Guardian’ wallet recovery service. This service uses two-factor authentication.

Hackers Break Through Guardian Security

According to Loopring's official statement, hackers managed to penetrate Guardian's security system and recover wallets that only used one Guardian as guard, without the owner's consent. This is contrary to Loopring's own provisions which require a minimum of half of the custodians to carry out transactions.

Although there has been no official explanation from Loopring regarding the security flaw that hackers exploited, this incident shows a weakness in their 2FA system.

Loopring Losses and Efforts

Blockchain data shows hackers managed to drain around $5 million in tokens from affected wallets. As a precautionary measure, Loopring has temporarily suspended services related to Guardian and two-factor authentication.

They also worked with Mist security experts to investigate the root of the hack and law enforcement officials to track down the perpetrators. Loopring urges users who have information regarding this hack to report it immediately.

Ironies and Valuable Lessons for Loopring

While this attack came as a surprise to the Loopring team, ironically their own risk disclosure document had identified a potential attack on the Guardian service. The document also recommends users select at least three guards.

This incident is a reminder of the importance of cyber security, especially in the crypto realm. Users are advised to remain vigilant, use strong passwords, and consider multi-party security services to minimize the risk of hacking.

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