Mixin Network Suffered $200M Breach

Mixin Network's database breach leads to $200 million loss, prompting temporary suspension of services. Investigation underway with assistance from SlowMist.

Sep 26, 2023 - 13:59
Sep 26, 2023 - 14:04
Mixin Network Suffered $200M Breach
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On September 23, Mixin Network's cloud service provider's database was compromised, leading to a loss of assets on its mainnet. The affected funds were estimated to be around $200 million. Mixin Network, a decentralized wallet service provider, supports 48 public blockchains and features a combined network asset value exceeding $1 billion. 

At the moment of the breach, Mixin Network took quick action. Deposit and withdrawal services were temporarily suspended, although asset transfers within the network remained unaffected. The company enlisted the expertise of blockchain security firm SlowMist to aid in the investigation. 

An autonomous inquiry conducted by the Web3 SaaS analytics platform 0xScope uncovered a prior association between the hacker and Mixin Network. During 2022, the wallet address 0x1795, which has been associated with the hacker, received a 5 ETH transfer from Mixin Network and subsequently deposited it into Binance.

Hacker's address 0x1795 was previously used to receive ETH from Minix

As per an analyst from 0xScope, the hacker opted to swap Tether (USDT) into DAI to mitigate the risk of the funds being frozen.

Furthermore, Mixin's founder, Feng Xiaodong, scheduled a public Mandarin livestream on September 25 to discuss the incident. The company also committed to providing an English content summary for a global audience. The Mixin team expressed their determination to minimize losses and apologized for the incident.

One of the critical discussions that emerged post-breach was Mixin Network's reliance on a centralized database. Critics pointed out that for a platform that champions decentralization, such a dependency creates a single point of vulnerability.

The aftermath of the breach was immediately felt in the market. Mixin Network's native cryptocurrency, XIN, faced significant selling pressure. As of the latest data, XIN was trading at $192.46, with a market capitalization of $115 million. 

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.