Loopring Suffers $5 Million Hack After 2FA Breach and Recovery Process Exploit

Jun 9, 2024, 02:46 PM

Loopring, an Ethereum Layer 2 protocol, has suffered a significant security breach affecting its smart wallets. The attack targeted wallets using Loopring's official Guardian, exploiting a vulnerability in the two-factor authentication (2FA) service. The hacker initiated a Recovery process, impersonating wallet owners to reset ownership and withdraw funds, resulting in a loss of $5 million. The breach specifically affected wallets with only one Guardian, highlighting a critical security flaw in the system.