Crypto News: Loopring Suffers $5M Breach, Bitcoin NFT Sales Climb

Crypto News: Loopring $5M Hack, Surge in Bitcoin NFT Sales, and More

Crypto News- Ethereum zero knowledge-rollup protocol Loopring announced on Sunday that it experienced a $5 million security breach in its two-factor authentication service, “Guardian,” used for its smart wallets application.

In a June 9 X post, Loopring disclosed that the attacker compromised their 2FA service, allowing the initiation of a recovery process that reset wallet ownership and enabled asset withdrawals.

Loopring shared two wallet addresses allegedly involved in the exploit. Etherscan data shows one of these wallets holding over $5 million in cryptocurrencies. The Guardian service allows users to select trusted wallets to help restore seed phrases or lock compromised wallets.

The project revealed that the exploiter compromised Loopring’s “Official Guardian” and initiated the recovery process on wallets using this guardian alone.

“We are actively collaborating with Mist security experts to determine how our 2FA service was compromised,” Loopring stated. They are also working with law enforcement “to track down the perpetrator.”

Loopring has temporarily suspended Guardian and 2FA-related operations to halt the compromise.

Bitcoin Sees Weekly Rise in NFT Sales Volumes

Nonfungible token (NFT) sales volumes have seen an 18.9% weekly increase, driven by sales of Bitcoin Ordinals, which are similar to NFTs.

Seven-day NFT sales volumes reached $147.3 million, with Bitcoin-based NFT sales rising over 57% to nearly $49.7 million, according to CryptoSlam! data.

Ethereum NFTs recorded the second-highest sales volumes at nearly $35.6 million, though they saw a slight 2.35% increase for the week.

Polygon, Immutable, and Blast were among the top ten blockchains by weekly sales volume that experienced double-digit percentage growth. Blast saw an over 95% increase 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 notable performers included Polygon’s Moon Girl NFTs, reminiscent of Milady, which surged 643% to nearly $5.8 million, and Immutable’s Guild of Guardians game, which saw a 22% increase to $7 million.

The biggest seller of the week was a new BRC-20 token with the ticker PIZZA, which saw $19.3 million in sales.

Ethereum L2s “Shouldn’t Be Immutable” — Uniswap Founder

Ethereum scaling layer-2 blockchains should not prioritize immutability — the ability to maintain an unchanged and unalterable ledger of transactions — until the Ethereum blockchain is ready, according to Uniswap founder Hayden Adams.

“Ethereum L2s shouldn’t be immutable. It’s been 10 years and L1 is not ready to be immutable,” Adams wrote in a June 9 X post.

He added that it “makes zero sense” to expect layer 2 networks “to never upgrade again or force mass migrations.”

“The interconnected nature of the users and apps on the L2 chain breaks composability if some migrate and some don’t,” Adams noted. The Ethereum Foundation has said layer 2 blockchains are its scalability plan, leading NFT marketplace Rarible’s ecosystem lead Jonathan Colón to call layer 2 networks a “money grab.”

“The entire plan for scaling Ethereum is ‘L2s,’” Adams responded. “We either have to make them work or change the roadmap (I favor the former).” He added that calling them cash grabs or insisting on immutability does not change the situation, noting they are expensive to build and not funded by the L1.

Other News

• Friend.tech, the crypto social media platform on Base, is developing its own blockchain, Friendchain, prompting curiosity among its users.
• China’s largest payments and services app, Alipay, has introduced an artificial intelligence bot capable of checking for baldness.

Loopring $5M Hack and Bitcoin NFT Sales FAQ

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