According to market information, $5 million was stolen from wallets using Loopring’s guardian service. Loopring, an Ethereum zkEVM protocol known as Ethereum’s most secure wallet, revealed two wallet addresses significantly impacted by this security breach. Loopring officials are consulting with Mist security experts to investigate the compromise. Meanwhile, activities related to the Guardian and two-factor authentication are suspended to safeguard users.

Loopring officials were unavailable for immediate comments as they work with law enforcement to identify the culprit. The unexpected attack has surprised Loopring’s top team and negatively impacted its native token's performance. The attackers stole at least $5 million, challenging Loopring's reputation as the safest Ethereum wallet. This breach underscores the importance of robust security measures in the crypto market and serves as a reminder for investors to stay vigilant amid rising cyber threats in the digital asset landscape.

The recent breach of Loopring’s two-factor authentication service highlights vulnerabilities in its security protocols. Ethereum-based protocols like Loopring must adopt stringent security measures in light of such incidents. Investors also bear a significant responsibility to enhance their security practices to protect their digital assets. Customers can restore seed phrases or lock compromised wallets using Loopring's Guardian service. Loopring is initiating a recovery process that resets wallet ownership and permits asset withdrawal. Founded by Daniel Wang and launched in September 2018, Loopring addresses the issues associated with traditional cryptocurrency exchanges by using a decentralized protocol based on Ethereum smart contracts. Its unique consensus mechanism, ZK-rollup, ensures high transaction speeds.

Loopring offers a smart way to trade digital assets without the drawbacks of centralized exchanges, presenting an open-source protocol for decentralized digital asset trading. It can be integrated into various Ethereum wallets, providing secure platform access for traders.

The LRC token is central to Loopring's ecosystem, used for transaction fees, user rewards, and staking in consensus. It enhances network security, community engagement, and decentralization. A notable feature of LRC is that it allows users to access multiple exchanges without needing individual accounts for each.

Investors are drawn to Loopring's features, including high transaction speeds, low trading costs, and a rewarding system. Daniel Wang, Loopring’s founder, is a Chinese entrepreneur and former Google software engineer.