Web3 Firm Mixin Network Hacked, $200 Million Stolen in Centralised Exploit: All Details

Mixin Network is working with cyber security firm SlowMist to get to the bottom of this case.

Written by Radhika Parashar, Edited by Ketan Pratap | Updated: 25 September 2023 18:46 IST

Web3 Firm Mixin Network Hacked, $200 Million Stolen in Centralised Exploit: All Details

Photo Credit: Pexels/ Shoma Shimazaki

The Mixin team has temporarily suspended all deposit and withdrawal services

Highlights

The centralised server of Mixin Network was exploited
The company has not finalised how to mitigate losses
Web3 research firm SlowMist working with Mixin to explore case

Web3 firm Mixin Network has officially informed its community members about a mega exploit that has drained $200 million (roughly Rs. 1,662 crore) from its account. The platform offers a decentralised wallet service, and it was launched in 2017 with a billion dollars worth of total value secured. Over the weekend, the database of Mixin Network's cloud service was hacked, which resulted in a multi-million-dollar loss. The platform is working with cyber security firm SlowMist to get to the bottom of this case.

Feng Xiaodong, the founder of Mixin Network, addressed the incident on September 24 in a live stream and assured community members that possible solutions are being discussed.

Meanwhile, the company has formally acknowledged the instance via their X handle.

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“The database of Mixin Network's cloud service provider was attacked by hackers, resulting in the loss of some assets on the mainnet. We will try our best to minimise the losses and deeply apologise for this,” the statement said.

For the time being, the Mixin team has deemed it fit to suspend all deposit and withdrawal services temporarily.

[Announcement] In the early morning of September 23, 2023 Hong Kong time, the database of Mixin Network's cloud service provider was attacked by hackers, resulting in the loss of some assets on the mainnet. We have contacted Google and blockchain security company @SlowMist_Team…
— Mixin Kernel (@MixinKernel) September 25, 2023

The losses incurred via this exploit have dented the platform/s treasury significantly. As per a CoinDesk report, the top 100 assets on Mixin Network amounted to barely over $1.1 billion (roughly Rs. 9,145 crore).

Since the news about this hack attack started to spread to social media, the native XIN token of the platform tumbled by eight percent. As per CoinMarketCap, XIN is currently trading at $194 (roughly Rs. 16,130).

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This, however, is not the first time that the centralised server of a blockchain firm has been traditionally hacked by cyber criminals.

Last year, a report by blockchain research firm CertiK said that “centralisation is antithetical to the ethos of DeFi and poses major security risks and that single points of failure can be exploited by dedicated hackers and malicious insiders alike.”

Researchers have previously also noted that elements of the crypto space like the DeFi sector would continue to get safer as more workload shifts from servers to blockchain networks.

The funds stolen in crypto scams, hacks, and rug pulls breached the mark of $656 million (roughly Rs. 5,454 crore) during the first half of 2023, a report by Web 3.0 security firm Beosin said in July.

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Further reading: Cryptocurrency, Web3, Mixin Network, Hack

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More