DeFi Platform Mixin Network Faces $200 Million Crypto Hack

UTC by Bhushan Akolkar · 3 min read
DeFi Platform Mixin Network Faces $200 Million Crypto Hack
Photo: Depositphotos

Mixin Network immediately suspended the deposits and withdrawals stating that they would soon announce their decision to deal with the lost assets.

Earlier today, the decentralized finance (DeFi) project Mixin Network announced the suspension of all deposits and withdrawals after losing $200 million in crypto assets in a recent hack. The SlowMist team was the first to report this incident. It also noted that the breach happened through a compromise in Mixin’s cloud service database.

During the hack, Mixin had $94.48 million worth of Ether (ETH), $23.55 million in Dai (DAI), and $23.3 million in Bitcoin (BTC), as revealed in an independent investigation conducted by PeckShield. The combined value of this portfolio thus reached $141.32 million.

Mixin has garnered investment and endorsement from the renowned Chinese Key Opinion Leader (KOL) Li Xiaolai. It positions itself as a wallet solution and currently offers support for 48 public chains, boasting a cumulative network asset value surpassing $1 billion.

Mixin Network has a mission to enhance blockchain scalability, enabling it to accommodate more transactions without imposing fees, as outlined in its white paper. As of its July monthly report, the top 100 assets on the network boasted a combined valuation exceeding $1.1 billion. Also, in recent market activity, the project’s native token, XIN, was trading at $194, marking an 8.6% decline over the previous 24 hours.

Mixin Network Suspends Deposits and Withdrawals after Crypto Hack

Mixin Network has temporarily suspended deposit and withdrawal services. These services will be reinstated after thorough evaluation and consensus among all network nodes, ensuring the resolution of any vulnerabilities. It’s important to note that transfers remain unaffected during this period. The Mixin team will further communicate the approach for addressing lost assets at a later time. Adding further, the Mixin Network noted:

“Regarding how to deal with the lost assets, the Mixin team will announce the solution afterward. Mixin founder Feng Xiaodong will explain this incident in a public Mandarin livestream at 13:00 HKT on September 25, 2023. Please help spread the word. We will summarize the content in English afterward for easy reference. We will try our best to minimize the losses and deeply apologize for this”.

Crypto market hacks continue in the crypto space. Recently, Ethereum co-founder Vitalik Buterin suffered a hack that led to a major compromise of his social media account on X, formerly Twitter.

Buterin has verified that he was targeted in a SIM swap attack, where an individual “socially-engineered T-mobile itself to take over my phone number”. These attacks, known as SIM swap or sim jacking attacks, are designed to seize control of the victim’s mobile number, subsequently exploiting two-factor authentication to gain unauthorized access to social media, banking, and cryptocurrency accounts.

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