Loopring shuts down decentralized exchange and trading system, affecting users’ funds

Loopring is shutting down its decentralized exchange service and the relayer that processes trades, according to an announcement reported by Wu Blockchain on June 28.

The move marks a sharp retreat for one of Ethereum’s early zk-rollup projects. Loopring said it was among the first teams to show that zero-knowledge proofs could help Ethereum scale, but said its non-EVM design, limited ecosystem growth, weak business development and the removal of LRC from major exchanges in 2026 left the business with too little support to continue operating the service.

The company said the suspension of DEX operations takes effect immediately. That means the relayer, the component that matches and processes trades for the platform, is being taken offline as part of the shutdown.

Loopring also laid out a cleanup plan for users with funds on the platform. It said it will publish final balances and send assets directly to Ethereum mainnet addresses for users holding at least $10. The company added that it will cover all gas fees tied to the transfer process.

For holders of LRC, the native token tied to the project, the shutdown adds another layer of pressure after the token’s delisting from major exchanges this year. Loopring did not say whether any other services would be affected beyond the DEX and relayer, and the announcement focused on the winding down of trading infrastructure.

The key item to watch now is Loopring’s final balance notice and the transfer process to mainnet. Until then, the market will be watching for any follow-up on timing, settlement steps and whether the shutdown stays limited to the exchange service or widens further.