Hong Kong-based decentralized finance (DeFi) project Mixin Network recently fell victim to a major cyber-attack, resulting in the loss of approximately $200 million in cryptocurrency. The attack, which was confirmed by Mixin Network on September 25, 2023, targeted the project’s cloud service provider database, leading to the significant financial loss.
As a result of the breach, Mixin Network has temporarily suspended deposit and withdrawal services while they work to address the vulnerabilities that were exploited. The project has enlisted the help of Google and blockchain security company Slow Mist to investigate the incident and strengthen their security measures.
Founder Feng Xiaodon addressed the situation in a live-streamed update from Hong Kong, providing guidance to affected users. While the update was initially delivered in Mandarin, Mixin Network has promised to release English summaries shortly.
In addition to the financial loss, Mixin Network also experienced a decrease in total value locked (TVL) of around $30 million, according to DeFi dashboard DeFi Llama. TVL is a metric used to measure the total value of digital assets locked or staked in a specific platform, indicating the extent of the impact of the hack on Mixin’s operations.
The Mixin protocol and its XIN token were established in 2017 to facilitate cross-chain transactions, enabling users to transact seamlessly between different blockchains without the need to worry about exchange rates or fees. The platform supports approximately 10,000 decentralized applications (DApps) globally, emphasizing its significance within the DeFi ecosystem.
The incident has sparked concern and criticism within the crypto community, particularly regarding the reliance of decentralized platforms on centralized cloud service providers. This hack ranks as the fifth-largest cyber-attack targeting cryptocurrency assets outside of exchanges, following notable breaches such as Ronin Network, Poly Network, BNB Bridge, and Wormhole over the past two years.
Despite attempts to reach out for comment, Mixin Network has yet to respond to inquiries regarding the incident. The aftermath of this attack serves as a stark reminder of the ongoing challenges and risks associated with operating within the decentralized finance space.