Mixin Network Suspends Services Following $200 Million Hack

Mixin Network, a decentralized wallet service provider, has suspended services after suffering a security breach that led to the theft of approximately $200 million worth of cryptocurrencies.

Mixin Suffers Security Breach 

The hack was first reported by SlowMist, a blockchain security platform, on Monday. SlowMist stated that the breach was caused by a compromise in Mixin’s cloud service provider database.

Mixin later confirmed the exploit on X (formerly Twitter), informing its users that deposit and withdrawal services have been temporarily suspended on its platform. 

“After discussion and consensus among all nodes, these services will be reopened once the vulnerabilities are confirmed and fixed. During this period, transfers are not affected,” Mixin added.

Mixin also stated that it has contacted Google and SlowMist to assist with investigations regarding the attack.

Mixin founder Feng Xiaodong is expected to give a detailed analysis of the exploit in a public Mandarin livestream today at 13:00 Hong Kong time.

“Regarding how to deal with the lost assets, the Mixin team will announce the solution afterward,” Mixin said.

Mixin touts itself as a free and lightning peer-to-peer transactional network for digital assets with cross-chain support. The platform supports over 48 public chains with total network assets exceeding $1 billion.

While Mixin service is similar to a layer-2 protocol, many in the crypto community pointed out that its reliance on a centralized database created a vulnerability point, which the hackers capitalized on.

Mixin’s Native Token Drops 10%

Meanwhile, the latest exploit severely impacted the price of XIN, Mixin’s native token. Following the announcement earlier this morning, XIN fell sharply by 8% to trade at $195. The decline follows a weekend high of approximately $216.

Decentralized finance (DeFi) projects have continued to be victims of hacks in recent years. Just last month, DeFi lender Exactly protocol suffered a security breach that led to the theft of approximately $12 million in users’ assets. Analysis from blockchain security firms revealed that the attackers exploit a vulnerability in the protocol’s smart contracts to carry out the attack.

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