Engineers, Not Business Operators': Why Loopring Is Shutting Down Its DEX

Loopring’s shutdown of its DEX marks a major retreat from its early Ethereum zkRollup ambitions as the platform stops all trading services effective immediately. The project, noted as the first to launch a zero-knowledge rollup on Ethereum, said the relayer has already been taken offline. Loopring attributed the decision to technical limits, including an early zkRollup design that lacked a virtual machine, reducing composability and limiting real-world applications such as payments. It also cited weaker business development than engineering and added pressure after LRC was delisted from major exchanges in 2026. The team said newer zkEVM solutions with broader Ethereum smart-contract compatibility have overtaken its specialized architecture. Loopring stated user funds remain safe and outlined a centralized return process it will run, including covering transaction fees, plus a two-week review for users to verify final account balances before distributions. In June 2024, an estimated $5 million was stolen from users of the Loopring wallet’s Official Guardian recovery service due to a flaw in its two-factor authentication.