Mixin Network suffers a $200 million hack attack

Mixin Network has suffered a hack attack, draining funds worth $200 million. The community has received confirmation of the news from Mixin Network on X, formerly Twitter, informing them that the decentralized wallet service has temporarily suspended deposit and withdrawal services. They can, however, continue to execute transfer orders on the platform.

Mixin Network will open up the services once the team has identified and fixed vulnerabilities.

Hackers attacked the database of the cloud service provider, said Mixin Network, adding that it has collaborated with Google and SlowMist to conduct investigations. The hack attack has stolen funds in the form of assets. The decision to reopen deposit and withdrawal services has been taken in consensus with all the nodes.

Moving forward, the team has said that it will provide more details about its plans to offer a solution to the matter. Feng Xiaodong, founder of Mixin Network, will personally address the situation in a public Mandarin livestream. The session is scheduled for September 25, 2023, at 13:00 HKT. The speech will be later translated into English for users across the world.

Mixin Network has apologized for the matter and has assured the community that the team will do its best to minimize the losses.

The community has not responded well to this announcement. Most of them have expressed dissatisfaction by saying that it is becoming common practice for networks to suffer a hack attack. Others have said they hope this is not an insider’s rug pull.

SlowMist has shared the news with its community to inform everyone that the team is working to assist Mixin Network in conducting the investigation. It has asked everyone to move on to the Mixin Network for more updates.

There are members of the community who are raising questions about the decentralized nature of the Mixin Network. This comes to light in the portion of the announcement that mentions that the database of the cloud service provider has been attacked. They are asking how the service can deal with the peer-to-peer segment.

Hack attacks are indeed common in the industry. Balancer was recently hit by a DNS attack on the front end of its website. The result was that Balancer, an Ethereum-based decentralized exchange, had to ask its members not to interact with the website. There was a chance that it was redirecting visitors to a phishing site where there was a malicious contract with the objective of stealing funds from users.

Vitalik Buterin’s X account was also a victim of a hack attack. While his platform was not directly attacked, his followers were tricked into engaging in transactions that later amounted to approximately $700,000 in non-fungible tokens and cryptocurrencies.

Mixin Network is working to identify and fix vulnerabilities, after which users can access deposit and withdrawal functionalities again. Till then, they can continue making transfers on the platform.