Loopring, an Ethereum zero-knowledge rollup protocol, experienced a significant security breach over the weekend. On Sunday, the company reported a $5 million hack resulting from a compromised two-factor authentication (2FA) service named “Guardian” for its smart wallets application.
In a June 9 X post, Loopring explained that the attacker compromised the 2FA service, enabling them to initiate a recovery process that reset wallet ownership and allowed the withdrawal of assets. Loopring identified two wallet addresses allegedly involved in the exploit, with Etherscan data showing one wallet holding over $5 million worth of cryptocurrencies.
Guardian Service Details
Loopring’s Guardian service allows users to designate trusted wallets to help restore seed phrases or lock hacked wallets. The attacker compromised Loopring’s “Official Guardian” and used it to start the recovery process on wallets, leveraging only that guardian.
Loopring is actively collaborating with Mist security experts to understand how the 2FA service was compromised and is working with law enforcement to track down the perpetrator. In response to the breach, Loopring temporarily suspended Guardian and 2FA-related operations, which halted the compromise.
Bitcoin NFT Sales Surge
Nonfungible token (NFT) sales volumes have seen a notable 18.9% increase over the past week, driven by a surge in sales of Bitcoin Ordinals. According to CryptoSlam! data, seven-day NFT sales volumes reached $147.3 million, with Bitcoin-based NFT sales rising over 57% to nearly $49.7 million.
Breakdown of NFT Sales
- Bitcoin NFTs: $49.7 million, a 57% increase
- Ethereum NFTs: $35.6 million, a slight 2.35% increase
- Polygon, Immutable, and Blast: Among the top ten blockchains by weekly sales volume, each saw double-digit percentage growth
Blast saw an over 95% bump to over $4.6 million in volume, largely due to the crypto influencer NFT trading card game fantasy.top, which doubled its volumes from the previous week to $3.85 million. Other significant movers included Polygon’s Milady-reminiscent Moon Girl NFTs, which increased 643% to nearly $5.8 million, and Immutable’s Guild of Guardians game, which saw a 22% increase to $7 million.
The biggest seller for the week was a new BRC-20 token with the ticker PIZZA, which saw $19.3 million in sales.
