Mixin Network Faces Controversy Over $200 Million Hack
Mixin Network, a decentralized cross-chain transfer protocol based in Hong Kong, is currently embroiled in controversy after a disclosure of a $200 million hack. The breach occurred on September 23 when hackers gained access to the database of Mixin’s cloud service provider, resulting in the loss of $200 million in assets on its mainnet. As a result, deposits and withdrawal services were immediately suspended, although transfers are still operational as the investigation continues.
Bitcoin Should Have Remained Secure
Zhuoer Jiang, CEO of Bitcoin mining pool BTC.TOP, criticized Mixin’s security measures in a post on September 25. He claimed that the stolen Bitcoin stored in the Mixin protocol “should have never been stolen in the first place.” Jiang stated that Mixin’s Bitcoin would typically be stored in cold storage and therefore unaffected by the cloud server hack that compromised Mixin’s hot wallets. In July, Mixin disclosed that it held 9,544 BTC worth around $253 million in its protocol.
Mixin Founder Promises Compensation
During a live briefing on September 25, Mixin founder Xiaodong Feng revealed that Bitcoin was the main asset stolen in the hack. He assured users that developers would compensate them for up to 50% of their stolen assets. The remaining portion would be distributed to users as “tokenized liability claims,” which Mixin plans to repurchase using future profits. Founded in 2017, Mixin had nearly $400 million locked across 48 chains before this incident.
Early Angel Investor and Loss Details
Mixin attracted significant investment since its inception, with Chinese billionaire Xiaolai Li being one of its early angel investors. Prior to the hack, the protocol had approximately $400 million locked in its system across 48 chains. Mixin allows users to send digital assets to others using phone numbers.
Hot Take: Mixin Network Under Fire for Major Security Breach
Mixin Network, a decentralized cross-chain transfer protocol, is facing backlash following a $200 million hack. The breach exposed vulnerabilities in the platform’s security measures and resulted in the loss of significant assets. While transfers remain unaffected, deposits and withdrawals have been suspended as investigations continue. Mixin’s founder has promised compensation for affected users, but questions about the protocol’s security practices persist. This incident highlights the importance of robust security measures in the crypto industry and serves as a reminder to investors to exercise caution when entrusting their assets to any platform.
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