Loopring’s network suffered a significant breach, with hackers stealing over $5 million. This incident has led to a predictable drop in Loopring’s market cap, as trust among the crypto community has diminished.
The ensuing Fear, Uncertainty, and Doubt (FUD) has compounded a 22% decline in $LRC over the past four days, potentially presenting a buying opportunity amid widespread fear.
➰😱 Loopring's network was compromised by a hack valued at over $5M. The project's market cap has predictably dropped as trust among the crypto community has shrunk. FUD is likely compounding the -22% $LRC 4-day drop, and there is a likely opportunity to buy into others' fear. pic.twitter.com/JAwMZyg1XS
— Santiment (@santimentfeed) June 11, 2024
The breach targeted some Loopring Smart Wallets, specifically those with only one Guardian—the Loopring Official Guardian. The hacker exploited this setup by initiating a Recovery process, masquerading as the wallet owner to reset ownership and withdraw assets.
The attack succeeded by compromising Loopring’s two-factor authentication (2FA) service, allowing the hacker to impersonate the wallet owner and gain approval from the Official Guardian. Consequently, the attacker was able to transfer assets out of the compromised wallets.
Loopring Teams Up with Security Agencies To Deal With The Hack
In response, the Loopring team is actively collaborating with Mist security experts to investigate how their 2FA service was compromised. To safeguard users, they have temporarily suspended Guardian-related and 2FA-related operations, effectively halting further breaches.
Loopring is also working closely with law enforcement and professional security teams to track down the perpetrator. Despite the breach, the prompt actions taken by Loopring to address the issue and their collaboration with security experts and authorities indicate a commitment to restoring trust and securing the network.
https://x.com/loopringorg/status/1799791898296451515?t=Nilm8B0NmCZtIMSnZsd9AA&s=19
As the investigation continues and security measures are reinforced, the market may start to regain confidence in Loopring. For now, the decline in $LRC presents a potential entry point for those looking to capitalize on the current market sentiment.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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