Mixin Network, prominent blockchain protocol that addresses scalability concerns, has suffered loss of substantial assets after the hackers compromised its database. In a September 23 update, the Mixin team lamented that hackers launched a malicious attack on the protocol, draining assets worth around $200 million.
The incident was first reported by SlowMist, a blockchain security company. In the report, the SlowMist team noted that the attacker identified a system vulnerability in the third-party cloud service provider.
Mixin Network Hacked
According to the SlowMist analyst, the attackers launched the malicious attack on Saturday, September 23, in the early morning hours. The incident resulted in a loss of measurable assets amounting to around $200 million.
Following the losses of substantial amounts, the Mixin team took proactive measures to ensure the remaining assets were safe. Hours after the hack, the Mixin team suspended all depository and withdrawal services indefinitely.
Consecutively, the blockchain firm enlisted SlowMist and Google to help in the recovery of funds. In a separate investigation by PeckShield, the Mixin owned assets amounting to $141.32 million.
The assets consisted of Ether (ETH), Dai (DAI), and Bitcoin (BTC), amounting to $94.48 million, $23.55 million, and $23.3 million, respectively. The Mixin team announced that deposit and withdrawal will commence after the technical team has fixed the system vulnerabilities.
Mixin Network Recovery Plan
Currently, the blockchain company seeks to restore operation before commencing to recover funds. Based on the hack’s severity, Mixin Feng Xiaodong’s founder has scheduled to give a public address on the livestream soon.
Since 2017, the Mixin Network has significantly improved the blockchain network. The report indicates that Mixin Network offers premium services that corresponds to the layer-2 protocol.
Primarily, Mixin seeks to improve cross-chain transfers by enhancing its efficiency and reducing cost. The remarkable contribution of the Mixin network solidifies the network at a considerable market share in the blockchain industry.
In July, the top 100 digital assets supported by the network were valued at $1.1 billion. The July report demonstrated that investors transferred around 663489 Bitcoin and 179647 Ether.
Given the September 23 hack, market critics argued that Mixin relies solely on a centralized database with a single point of weakness. They regretted that the centralized database contributed to the exploits since it is prone to vulnerability.
Rise of Malicious Attacks
A recent study from Immunefi demonstrated that the bad players had been preying on the Web3 sector last month. The ImmunFi report indicated that assets worth approximately $23 million were lost in August.
According to Immunefi, hackers stole assets worth around $15 million, while $7 million was lost in fraudulent schemes. The Immunefi analysis coincided with the hacking of Vitalik Buterin X’s account, which resulted in loss of a significant amount of assets.