Mixin Network Offers $20 Million Bug Bounty to Hacker
Cross-chain protocol Mixin Network has made a bold move by offering a $20 million bug bounty reward to the hacker responsible for the recent $200 million exploit. The bug bounty offer was communicated through an on-chain message, with Mixin urging the hacker to return the stolen assets, most of which belong to platform users. This strategy is commonly used to incentivize ethical hackers to uncover software bugs before malicious actors can exploit them.
Mixin Uses Bug Bounty Strategy to Negotiate Return of Stolen Assets
After suffering a $200 million exploit, Mixin Network is now using the bug bounty strategy to negotiate the return of most of the stolen assets. The protocol confirmed that the attack occurred due to a breach in the database of its network cloud service provider. This incident follows similar attacks on NFT marketplace OpenSea and on-chain analytics platform Nansen, both of which were also affected by attacks on third-party providers.
Founder Assures Users of Fund Restoration
Mixin Network’s founder, Xiaodong Feng, has assured users that up to 50% of the stolen funds will be restored. The remaining debt will be settled through bond tokens that Mixin will repurchase from users in the future. Withdrawal and deposit services on Mixin are currently suspended.
Mixin Contracts Google and SlowMist for Investigation
Mixin Network has contracted Google and blockchain security firm SlowMist to assist in its investigation into the hack. According to an update posted on X, Mixin claims that most of the asset tally work has been completed and that the losses are not as significant as initially estimated.
Mixin Urges Users to Stay Off Network
Mixin Network has advised users to stay off the network for now to avoid further losses. The native token of Mixin, XIN, has shown signs of recovery with a 4.19% gain on the last day. However, it still remains in the red zone with a 32.57% loss in market value over the past week.
Hot Take: Mixin Takes Drastic Measures to Recover Stolen Assets
Mixin Network’s decision to offer a $20 million bug bounty reward to the hacker demonstrates their determination to recover the stolen assets. By leveraging ethical hacking incentives, they hope to persuade the hacker to return most of the funds. Additionally, Mixin’s collaboration with Google and SlowMist for the investigation shows their commitment to resolving the issue promptly. While there are signs of recovery in XIN’s token price, users are advised to exercise caution and refrain from using the network until further notice.
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