Loopring recently experienced a $5 million hack due to a compromised 2FA system. The Ethereum zero knowledge-rollup protocol revealed that its two-factor authentication service, “Guardian,” was breached, allowing an attacker to reset wallet ownership and withdraw assets. The project identified two wallet addresses involved in the exploit, with one holding over $5 million in cryptocurrencies.
Loopring’s Guardian service typically enables users to select trusted wallets to assist in recovering seed phrases or securing hacked wallets. However, the exploiter managed to compromise Loopring’s “Official Guardian” and initiate the recovery process using only that guardian. The project is actively investigating the security breach with Mist experts and collaborating with law enforcement to track down the perpetrator. As a precaution, Loopring temporarily suspended Guardian and 2FA-related operations to prevent further compromises.
In a separate development, NFT sales volumes have surged by 18.9% weekly, driven by the popularity of Bitcoin-based NFTs such as Bitcoin Ordinals. Over the course of seven days, NFT sales volumes reached $147.3 million, with Bitcoin NFT sales growing by 57% to nearly $49.7 million. Ethereum NFT sales followed closely behind at nearly $35.6 million, experiencing a modest 2.35% increase.
Several blockchains, including Polygon, Immutable, and Blast, saw double-digit percentage growth in weekly sales volume. Blast, in particular, witnessed a significant 95% increase to over $4.6 million due to the success of the crypto influencer NFT trading card game fantasy.top. Other notable movers included Polygon’s Moon Girl NFTs, which surged by 643%, and Immutable’s Guild of Guardians game, which saw a 22% increase in sales volume.
Uniswap founder Hayden Adams expressed his opinion that Ethereum layer-2 blockchains should not prioritize immutability until the Ethereum blockchain itself is fully prepared. Adams argued that expecting layer 2 networks to remain immutable indefinitely would hinder their ability to adapt and upgrade efficiently. He emphasized the importance of making layer 2 networks functional and sustainable to support Ethereum’s scaling efforts effectively.
In other news, Friend.tech, a crypto social media platform on Base, is developing its blockchain called Friendchain, prompting curiosity among users. Meanwhile, Alipay, China’s largest payments app, has introduced an artificial intelligence bot capable of detecting baldness. Additionally, the blockchain Ronin has seen a surge in daily users, attributed to bots and airdrops, positioning it as the second most popular blockchain among Not Pixels fans.