Loopring Suffers $5 Million Hack via Compromised 2FA

Ethereum’s zero-knowledge rollup protocol, Loopring, reported a significant security breach over the weekend, with an attacker exploiting its two-factor authentication (2FA) service “Guardian” to siphon over $5 million.

In a statement on June 9, Loopring detailed how the attacker compromised the 2FA service, enabling them to initiate a recovery process that reset wallet ownership, allowing the withdrawal of assets. The project identified two wallet addresses involved in the exploit, with Etherscan data confirming one wallet holding over $5 million in cryptocurrencies.

Loopring’s Guardian service is designed to help users restore seed phrases or lock hacked wallets by selecting trusted wallets. However, the attacker managed to compromise Loopring’s “Official Guardian” and used it to start the recovery process on targeted wallets.

“We are actively collaborating with Mist security experts to determine how our 2FA service was compromised,” Loopring stated, adding that they are also working with law enforcement to track down the perpetrator. As a precaution, Loopring has temporarily suspended Guardian and 2FA-related operations, effectively halting further compromises.

Bitcoin Leads Weekly NFT Sales Increase

The nonfungible token (NFT) market saw a significant uptick this week, with sales volumes rising 18.9%, largely driven by the popularity of Bitcoin Ordinals. According to CryptoSlam! data, seven-day NFT sales reached $147.3 million, with Bitcoin-based NFT sales surging over 57% to nearly $49.7 million. Ethereum NFTs followed, generating nearly $35.6 million, albeit with a slight weekly increase of 2.35%.

Among the top ten blockchains by weekly sales volume, Polygon, Immutable, and Blast stood out with double-digit percentage growth. Blast experienced a remarkable 95% increase to over $4.6 million in sales, primarily due to the crypto influencer NFT trading card game, fantasy.top, which saw its volume double to $3.85 million.

Other notable performers included Polygon’s Moon Girl NFTs, which surged 643% to nearly $5.8 million, and Immutable’s Guild of Guardians game, which saw a 22% increase to $7 million. The biggest seller for the week was a new BRC-20 token with the ticker PIZZA, which achieved $19.3 million in sales.

Ethereum L2s Shouldn’t Be Immutable, Says Uniswap Founder

Hayden Adams, the founder of Uniswap, asserted that Ethereum layer-2 (L2) blockchains should not prioritize immutability until the Ethereum mainnet is fully ready. In a June 9 post, Adams argued that expecting L2 networks to avoid upgrades or mass migrations is unrealistic, given the current state of Ethereum’s primary layer.

“Ethereum L2s shouldn’t be immutable. It’s been 10 years and L1 is not ready to be immutable,” Adams wrote, emphasizing that the interconnected nature of users and applications on L2 chains could break composability if some migrate and others do not.

Adams responded to criticisms, including from Rarible’s ecosystem lead Jonathan Colón, who called L2 networks a “money grab.” Adams countered that developing and maintaining L2 solutions is expensive and necessary for Ethereum’s scalability.

Other News

• Friend.tech: The crypto social media platform on Base announced it is developing its own blockchain, Friendchain, prompting curiosity and speculation among its users.
• Alipay’s AI Bot: China’s largest payments and services app, Alipay, has introduced an artificial intelligence bot capable of detecting baldness.

Source: Cointelegraph