Feng Xiaodong, the founder of Mixin, a decentralized wallet service that recently fell victim to a $200 million hack, revealed in a public livestream on September 25, 2023, that the protocol can currently only guarantee the safety of half of its users’ funds.
“We’re trying to find a way to recover the compromised money, but that is very difficult,”
Xiaodong said during the livestream on Twitch.
Feng also disclosed that the team is contemplating the issuance of “bond tokens” to help users claim and offset the loss of the remaining assets, with plans for Mixin to repurchase them in the future. Furthermore, the company intends to establish a new system to host user assets securely.
Before the livestream, the Mixin team announced a temporary suspension of deposit and withdrawal services due to the attacks. These services will only be resumed once all vulnerabilities have been confirmed and fixed. During this period, Mixin assured users that transfers would not be affected. The team pledged to announce a solution for handling the lost assets once it has been determined.
[Announcement] In the early morning of September 23, 2023 Hong Kong time, the database of Mixin Network’s cloud service provider was attacked by hackers, resulting in the loss of some assets on the mainnet. We have contacted Google and blockchain security company @SlowMist_Team…
— Mixin Kernel (@MixinKernel) September 25, 2023
Mixin attributed the breach to the compromise of its Network’s cloud service provider database in the early hours of September 23, Hong Kong time. The protocol stated that it is collaborating with Google and the blockchain security company SlowMist to investigate the breach.
Following the attack, Mixin’s native token, XIN, experienced a significant drop in value, declining by approximately 10%.
As of the time of writing, XIN is trading at $192, down from a weekend high of around $216, according to data from CoinMarketCap. Additionally, the total value locked within the protocol decreased by roughly $30 million, now standing at $350 million, according to DeFiLlama.
This incident reflects a broader trend in the crypto space, with SlowMist’s weekly security report highlighting seven security incidents in the past week alone, ranging from phishing attacks to rug pulls and DNS hijacking.
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