Loopring, an Ethereum zero-knowledge rollup protocol, announced on Sunday that its smart wallet had suffered a major security breach, with attackers impersonating wallet owners to reset ownership and redeem assets.
The attack was allegedly linked to Loopring's official Guardian service, and the project is currently working with security and law enforcement agencies to investigate how the two-factor authentication system was compromised and hunt down the cybercriminals.
Loopring officially discloses the theft
According to a comprehensive announcement released by Loopring on the X platform, the attacker targeted a subset of wallets and exploited a vulnerability in the official Guardian service. This caused some wallets in Loopring to fall victim to this security breach.