Ethereum Layer 2 protocol Loopring announced a sophisticated attack on some of its smart wallets, primarily affecting those using its Guardian feature.
Hackers impersonated legitimate wallet owners to reset ownership and withdraw assets, causing significant losses.
Loopring responded by temporarily suspending the recovery feature and collaborating with security experts to address the vulnerability.
Users are advised to review their wallet security settings, stay vigilant against phishing attempts, and avoid initiating recovery processes until further notice.
Loopring also identified two wallet addresses involved in the security breach. Blockchain data reveals that one of these wallets drained approximately $5 million worth of tokens from the compromised wallets.
“We are actively collaborating with Mist security experts to determine how our 2FA service was compromised. To protect our users, we have temporarily suspended Guardian-related and 2FA-related operations. Following this action, the compromise has ceased,” the protocol wrote in its announcement on X.
Loopring reported that it is collaborating with law enforcement to trace the perpetrator and requested anyone with additional information about the hack to come forward and share it with the protocol.
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