Loopring has been hit with a $5 million hack as a result of a compromised 2FA system. The Ethereum zero knowledge-rollup protocol made the announcement on Sunday, revealing that its two-factor authentication service called “Guardian” for its smart wallets application was the target of the security breach.
According to a post on June 9, Loopring disclosed that the attacker exploited the project’s 2FA service to initiate a recovery process that reset wallet ownership and enabled the withdrawal of assets. They identified two wallet addresses associated with the exploit, with one of them containing over $5 million in various cryptocurrencies.
Loopring’s Guardian service allows users to select trusted wallets to assist with restoring seed phrases or securing hacked wallets. The project stated that the attacker managed to compromise Loopring’s “Official Guardian” and began the recovery process on wallets using only that guardian.
“We are actively working with Mist security experts to determine how our 2FA service was breached,” Loopring stated. The project is also collaborating with law enforcement to identify the perpetrator. As a precautionary measure, it temporarily suspended Guardian and 2FA-related operations, effectively halting the compromise.
In a separate development, weekly sales volumes for Nonfungible Tokens (NFTs) experienced an 18.9% increase, driven by the popularity of NFT-like Bitcoin Ordinals. Total seven-day NFT sales volumes reached $147.3 million, with Bitcoin-based NFT sales surging over 57% to nearly $49.7 million. Ethereum NFTs followed closely behind with sales volumes of nearly $35.6 million, marking a modest 2.35% increase from the previous week.
Various blockchains, including Polygon, Immutable, and Blast, witnessed double-digit percentage growth in weekly sales volume. Blast saw a significant 95% increase to over $4.6 million, largely attributed to the popularity of the crypto influencer NFT trading card game “fantasy.top.”
Additionally, Uniswap founder Hayden Adams expressed his opinion that Ethereum scaling layer-2 blockchains should not prioritize immutability until the Ethereum blockchain is fully prepared. Adams emphasized the need for layer 2 networks to be adaptable and open to upgrades to maintain composability within the ecosystem.
In other news, Friend.tech, a crypto social media platform on Base, is developing its own blockchain called Friendchain, sparking curiosity among its users. Meanwhile, China’s leading payments app Alipay has introduced an artificial intelligence bot capable of detecting baldness.