Massive $200M Drain Hits Mixin Network Mainnet in Hack

Mixin Network, a decentralized peer-to-peer network, is grappling with a significant setback as it faces a security breach that has resulted in the loss of approximately $200 million in crypto assets. This incident unfolded due to a breach of a third-party cloud service provider’s database, causing substantial concern within the crypto community.

On September 25th, Mixin Network officially confirmed that the hack occurred on September 23rd, siphoning off around $200 million worth of digital assets from its mainnet. In response to this breach, Mixin Network took immediate action by suspending all deposit and withdrawal services to mitigate further damage.

To investigate this security breach thoroughly, Mixin Network has enlisted the services of blockchain investigator SlowMist and sought assistance from Google. The Mixin team is actively working towards recovery efforts. At the time of the breach, Mixin Network held a diverse portfolio, including $94.48 million in Ether, $23.55 million in DAI, and $23.3 million in Bitcoin, as reported by a separate investigation conducted by PeckShield. The total portfolio value amounted to $141.32 million.

The restoration of deposit and withdrawal services on Mixin Network is contingent upon the confirmation and resolution of vulnerabilities. However, details regarding the plan to recover the lost assets for affected users have not been immediately disclosed.

Initially, there were promises that Mixin Network founder Feng Xiaodong would provide an explanation for the incident through a public Mandarin livestream scheduled for 1:00 pm Hong Kong Time on September 25th. However, links to the livestream were conspicuously absent from official social media channels and the Mixin Network website, leaving the crypto community in suspense.

This incident adds to the growing concerns over security breaches within the crypto space. Notably, Ethereum co-founder Vitalik Buterin recently experienced a security breach that compromised his social media profile on X. Buterin confirmed that he was a victim of a SIM swap attack, in which an attacker “socially-engineered T-mobile itself to take over my phone number.” SIM swap attacks aim to gain control of a victim’s mobile number, leveraging it to access social media, bank, and cryptocurrency accounts through two-factor authentication.

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