Decentralized wallet service Mixin Network lost $200 million worth of crypto assets in a hack over the weekend.
In an X post on Sunday, blockchain security firm SlowMist disclosed that Mixin’s cloud service provider database was attacked on September 23. The SlowMist team said they were assisting with the investigation.
🚨SlowMist Security Alert🚨
On September 23, the Mixin Network cloud service provider database was attacked, the amount of funds involved was ~ $200M.
SlowMist is assisting in the investigation. Please wait for @MixinKernel updates for more information.
— SlowMist (@SlowMist_Team) September 25, 2023
Mixin confirmed the hack in an X post of its own, verifying that $200 million worth of funds were involved in the exploit. The network said it had temporarily suspended withdrawals and deposits on the platform, and would reopen the services once all vulnerabilities had been fixed.
In a livestream at 1 pm Hong Kong time, the platform’s founder Feng Xiaodong said that for the time being, the team can only vouch for half the assets in question being secured.
Mixin’s native token XIN sold off sharply following the news of the exploit, and is currently trading at $195, down 8.6% over 24 hours.
According to its website, Mixin has secured more than $1 billion in total value since its launch in 2017. The cross-chain platform facilitates fast and efficient peer-to-peer transactions through its smart contracts.
However, market participants were quick to point out the irony of the fact that the root cause of the hack for a platform that considers itself decentralized was a vulnerable cloud service provider that relies on centralized servers.
It is because 94% of web3 services I have discussed with are using a centralized Cloud operator. The decentralization is not used for the customers' data storage…
— Brieuc | Nephele Labs (@Briwind) September 25, 2023