Loopring Suffers Huge Losses After Security Lapse in ‘Guardian’ Service

According to the information available from the market, $5 million was drained from wallets powered by Loopring’s guardian service. Loopring, the Ethereum zkEVM protocol, is often termed Ethereum’s most secure wallet.

Loopring, a zkEVM protocol on Ethereum, suffered a security breach in its ‘Guardian’ service, leading to the theft of $5 million from wallets using the service.

Two wallet addresses were affected by the breach, according to available market information. Loopring officials are working with Mist security experts to investigate how the service was compromised.

In response to the breach, Guardian and 2FA-related activities have been suspended to protect users' interests. Loopring officials were not immediately available for comment, and they are working with law enforcement to identify the perpetrator.

The recent attack came as a surprise to Loopring's top team, and their disclosure of the breach impacted the performance of its native token. The attackers stole at least $5 million, despite Loopring branding its wallet as the most secure Ethereum wallet.

The Loopring vulnerability highlights the importance of strong security measures in the crypto market and serves as a reminder to investors to be vigilant amid increasing cyber threats in the digital asset landscape.

The breach of Loopring's 2FA service points to potential weaknesses in its security protocols, and Ethereum protocols like Loopring should adopt stringent security measures in light of recent breaches.

Investors also bear a significant responsibility to enhance their security practices to safeguard digital assets. Customers can restore seed phrases or lock compromised wallets through Loopring Guardian service.

Loopring is initiating a recovery process that will reset ownership of the wallet and allow for asset withdrawal. The leading centralized exchange was founded by Daniel Wang and launched in September 2018.