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Loopring Network Hit By $5M Hack, Market Cap Drops Amidst FUD

Loopring’s network suffered a significant breach, with hackers stealing over $5 million. This incident has led to a predictable drop in Loopring’s market cap, as trust among the crypto community has diminished.

The ensuing Fear, Uncertainty, and Doubt (FUD) has compounded a 22% decline in $LRC over the past four days, potentially presenting a buying opportunity amid widespread fear.

The breach targeted some Loopring Smart Wallets, specifically those with only one Guardian—the Loopring Official Guardian. The hacker exploited this setup by initiating a Recovery process, masquerading as the wallet owner to reset ownership and withdraw assets.

The attack succeeded by compromising Loopring’s two-factor authentication (2FA) service, allowing the hacker to impersonate the wallet owner and gain approval from the Official Guardian. Consequently, the attacker was able to transfer assets out of the compromised wallets.

Loopring Teams Up with Security Agencies To Deal With The Hack

In response, the Loopring team is actively collaborating with Mist security experts to investigate how their 2FA service was compromised. To safeguard users, they have temporarily suspended Guardian-related and 2FA-related operations, effectively halting further breaches.

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Loopring is also working closely with law enforcement and professional security teams to track down the perpetrator. Despite the breach, the prompt actions taken by Loopring to address the issue and their collaboration with security experts and authorities indicate a commitment to restoring trust and securing the network.

https://x.com/loopringorg/status/1799791898296451515?t=Nilm8B0NmCZtIMSnZsd9AA&s=19

As the investigation continues and security measures are reinforced, the market may start to regain confidence in Loopring. For now, the decline in $LRC presents a potential entry point for those looking to capitalize on the current market sentiment.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: serezniy/123RF// Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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