Loopring Tells Users to Contact Team on Asset Recovery Following $5M Security Breach
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Following the recent security breach on its platform, the Loopring Team has advised users who have experienced asset loss to contact them on their funds.
“If you’ve experienced asset loss during the Loopring Smart Wallet compromise event, please contact us,”
the Loopring team stated in a recent social media post.
If you’ve experienced asset loss during the Loopring Smart Wallet compromise event – please contact us at foundation at loopring dot org
We are actively collaborating with security experts, centralized exchanges (CEX), and law enforcement to recover the lost funds. Any progress… https://t.co/Wz8dfA9sjQ
— Loopring
(@loopringorg) June 10, 2024
The team had earlier confirmed that the zk-rollup-based scaling protocol for Ethereum suffered an attack where several of its smart wallets were compromised, resulting in a loss of $5 million.
A few hours after the breach, the Loopring team issued a statement stating that they are actively working to address the situation.
“We are actively collaborating with security experts, centralised exchanges (CEX), and law enforcement to recover the lost funds. Any progress will be communicated through our official channels immediately. Also, be aware and watch out for impersonators and scammers in the replies who are trying to capitalise off this event.“
According to the team, the attacker exploited a vulnerability in Loopring’s 2FA service, the Guardian service, which allows users to name trusted wallets for security operations. This allowed them to impersonate wallet owners, initiate a recovery process, reset ownership, and withdraw assets.
The team stated that they had identified the wallet address to which the stolen digital assets were transferred. They mentioned that the funds were converted to Ethereum (ETH), and the attackers’ wallet address currently holds 1373 ETH, valued at over $5 million.
In their recent announcement, the Loopring team noted that they temporarily suspended Guardian-related and 2FA-related operations to prevent further breaches. They are also collaborating with Mist security experts and law enforcement agencies to investigate the breach, track down the perpetrator, recover the stolen assets, and prevent future breaches.
“We are working with security experts from Mist to determine how our 2FA service was compromised,”
the team stated.
“To protect our users, we have temporarily suspended Guardian-related and 2FA-related operations. Following this action, the compromise has ceased.“
The team has also pledged to provide continuous updates as the investigation progresses. “Security and user protection remain our top priorities,” they emphasized.
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