Mixin Network Losses Nearly $200M in Hack

Mixin Network is a protocol designed to address blockchain scalability issues – at the expense of having a centralized database.

AccessTimeIconSep 25, 2023 at 4:24 a.m. UTC
Updated Sep 25, 2023 at 4:39 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Mixin Network has confirmed a report from SlowMist, a blockchain security consultancy, that it has been hacked for nearly $200 million.

“In the early morning of September 23…the database of Mixin Network's cloud service provider was attacked by hackers, resulting in the loss of some assets on the mainnet,” Mixin Network said in a statement. “The funds involved are approximately US$200 million.”

Mixin Network is a service similar to a layer-2 protocol, designed to make cross-chain transfers cheaper and more efficient.

But the problem with this, as many have pointed out on Twitter, is that it's reliant on a centralized database, creating a single point of failure.

According to a monthly report from July, the top 100 assets on the Mixin Network have a value of just over $1.1 billion.

The firm reports that there were 663,489 unique monthly transactions of bitcoin (BTC) and 179,647 ether (ETH) transactions during July.

Mixin Network’s founder is set to address the issue in a live stream later in the afternoon.

Edited by Parikshit Mishra.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about