Loopring suffers huge losses after security lapse in ‘Guardian’ service

According to the information available from the market, $5 million was drained from wallets powered by Loopring’s guardian service. Loopring, the Ethereum zkEVM protocol, is often termed Ethereum’s most secure wallet. They shared details of two wallet addresses badly affected by the security breach. The officials of Loopring are speaking with Mist security experts to analyze how their service was compromised. The Guardian and two-factor authentication-related activities are suspended now to protect the interests of users.

The officials of Loopring were not available for immediate comments, and they are working with law enforcement agencies to trace the culprit. The recent attack was a shocking surprise for the top team at Loopring, and their disclosure about the recent hack affected the performance of its native token. The perpetrators behind the cyber-attack pilfered at least $5 million, and Loopring branded their wallet as the safest Ethereum wallet. The loopring vulnerability points to the significance of strong security measures in the crypto marketplace. It reminds investors to remain alert amidst increasing cyber threats in the digital asset landscape.

The recent compromise of Loopring’s two-factor authentication service denotes vulnerabilities in its security measures. Ethereum protocols like Loopring should implement stringent security protocols in the current context of similar security breaches. There lies a huge responsibility on the part of investors, too, and they should improve their security practices to protect digital assets. Customers can restore seed phrases or lock compromised wallets using the Loopring Guardian service. Loopring is starting a recovery process that resets ownership of the wallet and permits asset withdrawal. The leading centralized exchange, founded by Daniel Wang, was launched in September 2018.

Loopring was introduced to address the issues linked with conventional cryptocurrency exchanges. It is established on a decentralized protocol that uses smart contracts on the Ethereum blockchain. Loopring’s protocol features an open and interoperable cryptocurrency trading platform. It leverages a distinctive consensus mechanism,’ ZK-rollup,’ ensuring super transaction speeds. 

Loopring provides a smart way to trade digital assets without the disadvantages of centralized exchanges. It is known as an open-source protocol that showcases a decentralized trading platform for digital assets. Loopring can be successfully incorporated into diverse Ethereum wallets and traders can access the platform securely with Loopring.

The key applications of the LRC token revolve around transaction fees, rewarding users, and staking in consensus. The LRC token improves network security, community engagement, and decentralization. The key concept behind LRC is an open-source protocol based on smart contracts on the Ethereum blockchain network. The incredible feature of LRC is that it gives users access to multiple exchanges without opening an individual account in each exchange. 

Investors fall in love with the marvelous features of Loopring, which include high transaction speeds, cheap trading costs, and a lucrative reward system. Daniel Wang, the founder of Loopring, is a Chinese entrepreneur and software mastermind who had an illustrious stint at Google.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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