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Mixin network loses nearly $200 mln in hack, details here

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The blockchain protocol has reported a significant hack resulting in losses of approximately $200 million.

Crypto hack Mixin network

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  • The network has been critiqued for relying on a centralized database, which poses a single point of failure.
  • Mixin Network’s founder announced plans to address the issue in a live stream session.

Mixin Network, a protocol aimed at tackling blockchain scalability challenges, recently confirmed that it suffered a substantial hack. The incident came to light following a report by SlowMist, a blockchain security consultancy.

On the early morning of 23 September, Mixin Network experienced a cyberattack on its cloud service provider’s database. The attack led to the loss of assets on the platform, totaling nearly $200 million.

The network promptly responded to the breach, acknowledging the severity of the situation.

Centralized aspect of the network exposed as vulnerability

Mixin Network operates as a service akin to a layer-2 protocol, with a primary objective of facilitating cost-effective and efficient cross-chain transfers.

However, it has been critiqued for relying on a centralized database, which poses a single point of failure. This centralized nature may have contributed to the vulnerability exploited by hackers during the breach.

According to data from a July monthly report, the top 100 assets on the Mixin Network had a combined value exceeding $1.1 billion. During the same month, the platform recorded 663,489 unique monthly transactions involving Bitcoin [BTC] and 179,647 transactions involving Ethereum [ETH].

In response to the breach, Mixin Network’s founder announced plans to address the issue in a live stream session scheduled for later.

DeFi Dominance: Hacks and Losses in August 2023

The crypto network is no stranger to hacks and scams. In August 2023, the web3 ecosystem faced crypto losses totaling $23 million, as revealed in a comprehensive report by Immunefi, a leading bug bounty and security platform.

Hacks were the primary cause of these losses, amounting to $15 million, while frauds contributed $7 million.

DeFi projects bore the brunt of the attacks, with Ethereum, Base [BASE], and BNB Chain accounting for 62% of the total chain losses. Coinbase-backed Base protocol emerged as a notable target, experiencing losses across four projects.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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