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

• 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.

?SlowMist Security Alert?

On September 23, the Mixin Network cloud service provider database was attacked, the amount of funds involved was ~ $200M.

SlowMist is assisting in the investigation. Please wait for @MixinKernel updates for more information.

— SlowMist (@SlowMist_Team) September 25, 2023

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.

[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

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.