A Recent Hack at an Altcoin Leads to Losses for Users
A recent security breach at an altcoin resulted in certain users losing funds from their wallets. Loopring (LRC), a protocol built on Ethereum known for its secure wallet services, reported a vulnerability in its ‘Guardian’ two-factor authentication system.
The Guardian service is designed to allow users to designate trusted individuals or institutions to help with security measures, like locking compromised wallets or recovering lost seed phrases. However, a hacker was able to exploit this system by bypassing Loopring’s Official Guardian service and making unauthorized transactions on affected wallets.
Loopring disclosed that more than half of the custodial wallets required multiple protectors or a different third-party protector to prevent this vulnerability. The protocol identified two wallet addresses involved in the breach, with one wallet managing to withdraw around $5 million worth of tokens.
In response to the incident, Loopring announced that they are working with security experts to investigate the breach. They have temporarily suspended Guardian-related and 2FA-related operations to protect users from further harm. The protocol is also collaborating with law enforcement to identify the attacker and urged anyone with relevant information to come forward.
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