Loopring Faces $5 Million Hack Due to Compromised 2FA
Loopring announced on Sunday that it experienced a significant security breach, resulting in the theft of $5 million from its two-factor authentication service, known as “Guardian,” which is utilized in its smart wallet application. In a post on X dated June 9, Loopring revealed that the attacker exploited vulnerabilities in the 2FA system, enabling them to initiate a wallet recovery process that reset ownership and facilitated the withdrawal of assets. The company disclosed two wallet addresses believed to be linked to the breach, with Etherscan data indicating that one of these wallets contains over $5 million in various cryptocurrencies.
The Guardian service provided by Loopring enables users to designate trusted wallets that assist in recovering seed phrases or securing compromised wallets. According to Loopring, the perpetrator managed to infiltrate the “Official Guardian,” allowing them to commence recovery processes for wallets that relied solely on that service. The company stated, “We are actively collaborating with Mist security experts to determine how our 2FA service was compromised,” and is also working with law enforcement to apprehend the individual responsible. To prevent further exploitation, Loopring has temporarily suspended Guardian and its 2FA functionalities.
Bitcoin NFT Sales Experience Weekly Surge
The sales volume for non-fungible tokens (NFTs) has seen a notable weekly increase of 18.9%, largely driven by the popularity of Bitcoin Ordinals, which resemble NFTs. In the past week, total NFT sales reached $147.3 million, with Bitcoin-based NFTs experiencing a staggering 57% surge, amounting to nearly $49.7 million, according to data from CryptoSlam! Ethereum NFTs followed with sales nearing $35.6 million but witnessed a slight decline of 2.35% over the week. Other blockchain networks like Polygon, Immutable, and Blast were among the top ten platforms, registering significant percentage increases in weekly sales.
In particular, Blast recorded a remarkable growth of over 95%, surpassing $4.6 million in volume, primarily due to the NFT trading card game fantasy.top, which saw its sales double to $3.85 million compared to the previous week. Noteworthy increases were also observed in Polygon’s Moon Girl NFTs, which surged by 643% to nearly $5.8 million, and Immutable’s Guild of Guardians game, which experienced a 22% rise to reach $7 million. The standout performer of the week was a new BRC-20 token labeled PIZZA, which generated an impressive $19.3 million in sales.
Uniswap Founder Questions Immutability of Ethereum L2s
Hayden Adams, the founder of Uniswap, has expressed that Ethereum’s layer-2 blockchains should not prioritize immutability—the characteristic of maintaining an unchanged transaction record—until the Ethereum mainnet is sufficiently prepared. In a post on X on June 9, Adams stated, “Ethereum L2s shouldn’t be immutable. It’s been 10 years and L1 is not ready to be immutable.” He emphasized that it is unreasonable to expect layer-2 networks to remain permanently unaltered or to force mass migrations.
Adams further explained that the interconnected relationships among users and applications on layer-2 chains complicate composability when some users migrate and others do not. The Ethereum Foundation has identified layer-2 solutions as critical to its scalability strategy, prompting NFT marketplace Rarible’s ecosystem lead, Jonathan Colón, to characterize these layer-2 solutions as potential “money grabs.” Responding to this, Adams contended, “The entire plan for scaling Ethereum is ‘L2s.’ We either have to make them work or change the roadmap (I favor the former),” underscoring that the development of these solutions is costly and not adequately funded by the main Ethereum network.
Additional Developments in the Crypto Space
In other news, Friend.tech, the crypto-based social media platform operating on the Base blockchain, is set to launch its own blockchain called Friendchain, raising questions among users about the decision. Meanwhile, Alipay, China’s largest payments app, has introduced an artificial intelligence bot capable of assessing baldness, showcasing the growing intersection of AI technology and everyday applications.
