According to Foresight News, Ethereum Layer 2 protocol Loopring released a report on multiple hacking incidents that affected Loopring Smart Wallet users, saying that the recent incident was actually a mixture of two independent but interrelated incidents, which ultimately led to the loss of funds for some affected Loopring Smart Wallet users. In April, the Loopring relayer was attacked, resulting in the loss of assets within the team. In June, the Loopring wallet address suffered a subsequent attack, resulting in the loss of funds from 58 user addresses. Although end users are responsible for self-custody security to ensure protection from central, single-point failures, the Loopring team is willing to work with more law enforcement and security teams to help users recover their lost assets.
Loopring said, “In light of this incident, we will shift our resources and core focus to the multi-network Loopring Layer 3 and Loopring DeFi DApp product suite. Loopring Wallet will continue to be open to existing users, but mobile development work will shift to optimizing the Loopring DeFi DApp.”
