Mixin offers hacker $20 mln bounty to return stolen funds

• The offer presented a unique attempt to incentivize the hacker to return the stolen assets voluntarily.
• A similar incident unfolded recently on the HTX exchange.

Mixin Network, a cross-chain service, recently became the target of a significant hack, with the reported loss amounting to a staggering $200 million. In an unexpected twist, the platform has extended an unconventional offer to the perpetrator.

The network has proposed a $20 million “bug bounty” reward in exchange for the return of the pilfered funds.

Mixin Network faced the breach over the weekend leading to the suspension of deposits and withdrawals on the platform. This incident left users concerned as only half of their assets were deemed safe in the aftermath of the attack.

Incentivizing hackers in the crypto sphere

Mixin Network conveyed its offer directly to the hacker via an on-chain message. The message read, “Most of our platform assets were users’, and we hope you can refund them. You can keep $20 million of the assets as a BUG Bounty Reward for the BUG.”

The network has since provided an update via X (formerly Twitter), revealing that the situation may not be as dire as initially estimated.

[Update]
The first time the incident occurred, we contacted Google (Mandiant) and blockchain security company @SlowMist_Team to assist with the investigation.

After several days, we have completed most of the asset tally work, and the situation is much more optimistic than… https://t.co/ySOHCkGK7t

— Mixin Kernel (@MixinKernel) September 27, 2023

As the situation unfolds, Mixin Network has issued a cautionary advisory to its users. It urged them to refrain from conducting transactions and market activities on the platform temporarily. This measure aims to prevent any further unnecessary losses during the ongoing recovery process.

Huobi’s message to a cyber attacker

A similar incident unfolded earlier on 24 September. HTX, previously known as Huobi, a major Hong Kong-based centralized cryptocurrency exchange, suffered a cyberattack.

The attack resulted in the loss of approximately $7.9 million in cryptocurrencies. During the breach, a Huobi hot wallet sent a message to the attacker, offering a “white-hat bonus” of 5% of the stolen funds if 95% was returned.

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.