Ripple CTO David Schwartz Sends Warning To XRP Holders

June 11, 2024 2:59 pm Comments

Ripple’s CTO David Schwartz, sent out a warning to XRP holders.

Schwartz warned XRP holders and the cryptocurrency community as a whole that an account on X pretending to be the official Loopspring protocol was attempting a phishing scam.

The fake Loopspring account claimed that Loopspring had suffered a security breach and was offering users compensation.

Schwartz quickly called out the account, which resulted in the suspension of the X account.

Per Times Tabloid:

Ripple’s Chief Technology Officer (CTO), David Schwartz, played a vital role in protecting XRP holders and the wider cryptocurrency community from a recent phishing attempt. Someone pretending to be the official Loopring protocol account on X (denoted by @loopringorg) published false information.

This fake account claimed that Loopring had suffered a security breach and was offering user compensation. Schwartz identified the post as a scam and promptly alerted his followers. In response to the alert, the fake X account was swiftly suspended.

Following Schwartz’s intervention, Loopring’s official X account (@loopringorg) clarified the situation. They confirmed a security incident involving some Loopring Smart Wallets. Hackers compromised the platform’s two-factor authentication (2FA) service, allowing them to bypass security measures and steal assets from targeted wallets.

The attackers manipulated the 2FA system to gain unauthorized approval for ownership reset and subsequent withdrawal of cryptocurrencies. Loopring has temporarily halted all operations related to its Guardian service, which was exploited in the attack.

Per Binance:

According to U.Today, Ripple’s Chief Technology Officer (CTO), David Schwartz, has issued a warning about a scam targeting the global cryptocurrency community, including XRP users. Schwartz highlighted a tweet from an account impersonating the official handle of the Loopring protocol, @loopringorg. The fraudulent post claimed that Loopring had suffered a security breach, resulting in significant customer funds being lost to hackers and ‘user compensation claims.’

Schwartz quickly identified this as a scam, cautioning the community to be wary. The fake account was promptly suspended, and Schwartz updated his original post with a link to a genuine tweet from @loopringorg, which provided accurate details about the incident.

The official post from @loopringorg confirmed that some Loopring Smart Wallets had indeed been compromised in a hacker attack. The attacker had posed as the wallet owner, resetting ownership and withdrawing assets from the targeted wallets. The hacker was able to bypass Loopring’s 2FA service and gain approval for the recovery from the Official Loopring Guardian. As a result, all operations connected with the Guardian service have been temporarily suspended.

The Loopring team is now working with law enforcement and security experts to track down the hacker. They have shared the two hacker addresses and asked the crypto community for assistance in their investigation.

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