Decentralized Finance Network Mixin Loses $200 Million in Crypto
The decentralized finance (DeFi) network Mixin recently experienced a major security breach, resulting in the loss of approximately $200 million worth of cryptocurrency. The attack was caused by a compromise in the network’s cloud service provider database. A separate investigation conducted by blockchain security platform Peckshield revealed that Mixin’s total portfolio accounted for around $141 million at the time of the attack.
Attack Details and Response
The attack took place on September 23, 2023, during the early hours in Hong Kong. Mixin network promptly suspended deposits and withdrawals to prevent further losses. The team assured users that these services will resume once vulnerabilities are addressed. Transfer services remain unaffected during this suspension period. The exchange’s founder, Feng Xiaodong, is set to provide more information about the attack via a public Mandarin live stream on September 25, 2023.
Collaboration for Investigation
Mixin has reached out to Google and Slowmist, a blockchain security company, to aid in the investigation of the attack. SlowMist has already announced its assistance following a security alert post on September 24, 2023.
Mixin Founder Offers Solutions
During the live stream, Mixin founder Feng Xiaodong stated that half of users’ assets affected by the breach will be guaranteed safe. However, recovering the compromised funds is proving difficult. To address this issue, Mixin plans to issue “bond tokens” to affected users and repurchase them in the future. Additionally, the exchange intends to establish a new system with enhanced security measures to safeguard user assets.
Mixin’s Reliance on Centralized Database
Mixin’s vulnerability is believed to stem from its decentralized network relying on a centralized database. This incident highlights the importance of ensuring robust security measures in decentralized finance platforms.
Hot Take: Mixin Network Suffers Major Losses in Security Breach
The recent security breach experienced by Mixin network has resulted in the loss of $200 million worth of cryptocurrency. The attack was caused by a compromise in the network’s cloud service provider database. Mixin has suspended deposits and withdrawals to prevent further losses, and investigations are underway with the assistance of Google and Slowmist. The exchange’s founder has offered solutions, guaranteeing the safety of half of users’ assets and planning to issue “bond tokens” for affected funds. A new system with enhanced security measures will be established. This incident underscores the need for robust security in decentralized finance platforms.
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