Launched in 2017, Mixin established a niche for itself with a robust payment network. It is an open-source lightning-fast peer-to-peer transactional mechanism for crypto. So far, it has secured more than $1 Billion in total value. The platform always prioritizes privacy and decentralization. And while it mostly garnered praise for its functionality, it was recently victimized by hackers.
How Did The Incident Unfold for Mixin?
Recently, Mixin reported a loss of $200 Million due to a major hacking attack. Mostly, crypto firms collaborate with blockchain analysts and cybercrime specialists in such cases. But MIxin is taking an unconventional approach in this incident. Instead of going after the perpetrators, it’s luring them with a handsome incentive.
That’s right; it has announced a reward of $20 Million in exchange for the return of the stolen funds. As per the reports, Mixin had to suspend deposits and withdrawals on its platform due to this attack. After hearing the news, the users felt worried as a large portion of their assets was at stake. Mixin Network aired its message to the hacker through an on-chain message.
The message said that most of its platform assets are its users. The message expressed hope of getting the funds back. It mentioned that it’s willingly giving away $20 million as a BUG Bounty Reward. In exchange, it just asks for the safe return of assets. Furthermore, the network shared a post on X (Twitter) assuring users that the situation was under control. The post said that the situation isn’t as dire as it seems.
Mixin contacted Google and Mandiant, a blockchain security company for an investigation. The subsequent update said that the team had completed most of the asset tally work. It also assured that the situation was much more optimistic than the purported scenario. But the Mixin is also trying not to leave a loose end here. It has cautioned its users to refrain from transacting and indulging in market activities.
Cautions, Similar Incidents and Possible Outcomes
It said that users must adhere to these measures temporarily. Once the losses are recovered, things will go back to the way they were. A similar incident happened on September 24, and the victim was HTX, aka Huobi. It’s a major Hong Kong-based centralized crypto exchange that suffered losses to the tune of $7.9 Million.
Notably, Huobi also took the same approach. It offered a bonus of 5% of the stolen funds if 95% were returned. It’s not yet confirmed if the firm has gotten the stolen funds back or not. Moreover, in August 2023, Immunefi, Bug Bounty and the security platform shared a relevant report. It revealed that the Web3 ecosystem faced losses worth $23 Million in the same month. While the hacks contributed to the loss of $15 Million, the frauds added $7 Million.
If the hackers agree to this offer, it would set a precedent for the crypto industry. Maybe in the future, more firms will resort to this approach.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/30/mixin-to-offer-hackers-20-million-in-return-of-stolen-funds/