Loopring, the pioneering zero-knowledge rollup, is shutting down its decentralized exchange — disabling the trustless self-custody exit that was the core security promise of its zk-rollup design.
The team will upgrade the DEX smart contract to a version allowing only whitelisted addresses (controlled by Loopring) to transfer assets out of the L2 system. Self-custody redemption is disabled in favor of batch distribution run by the team.
No allegation of bad faith — team returns assets at own expense. But the structure requires faith of the kind zk-rollups were built to make unnecessary.
Accounts with final balance below $10 excluded from distribution “to keep the process efficient.”
Users should verify listed balance during two-week review window after final balance list published on X. Distribution expected within weeks of starting.
Trading already halted; no user action required to trigger withdrawal.