Weekend Wrap: Loopring $5M exploit, Bitcoin NFT weekly sales bump and more

An attacker exploited Loopring’s 2FA service and made off with over $5 million and the NFT market saw sales rise on the week led by Bitcoin Ordinals.

Loopring suffers $5M hack via compromised 2FA

Ethereum zero knowledge-rollup protocol Loopring said on Sunday that it suffered a $5 million security breach of its two-factor authentication service “Guardian” for its smart wallets application.

In a June 9 X post, Loopring said the attacker compromised the project’s 2FA service, which allowed them to initiate a recovery process that reset wallet ownership and allowed the withdrawal of assets.

It shared two wallet addresses it alleged were involved with the exploit. Etherscan data shows one wallet holding over $5 million worth of cryptocurrencies.

Loopring’s Guardian service allows users to choose wallets they trust to help restore seed phrases or lock hacked wallets.

The project said the exploiter somehow compromised Loopring’s “Official Guardian” and started the recovery process on wallets using only that guardian.

“We are actively collaborating with Mist security experts to determine how our 2FA service was compromised,” Loopring said. It’s also working with law enforcement “to track down the perpetrator.”

It temporarily suspended Guardian and 2FA-related operations, which it said halted the compromise.$BTC $ETH $SOL #bitcoin #BTC #Metaverse