Mixin Network Hack: $200 Million in Assets Stolen, Compensation Plan Announced

Mixin Network, a decentralized cross-chain transfer protocol, faces controversy after hackers stole $200 million in assets. Read more about the hack and the compensation plan in this article.

Posted 8 months ago in Security

A depiction of a hacker stealing digital assets from a virtual cloud. The image portrays the concept of cybersecurity breaches and asset theft.

Mixin Network, a Hong Kong-based decentralized cross-chain transfer protocol, is facing controversy after a $200 million hack. On September 23, hackers breached the database of Mixin's cloud service provider, resulting in the loss of $200 million in assets on its mainnet. While deposits and withdrawal services have been suspended, transfers remain unaffected during the ongoing investigation.

Zhuoer Jiang, CEO of Bitcoin mining pool BTC.TOP, claimed that the stolen Bitcoin stored in the Mixin protocol should not have been compromised. Usually stored in cold storage, it remains unaffected by the cloud server hack targeting Mixin's hot wallets.

Mixin founder, Xiaodong Feng, announced a compensation plan during a live briefing on September 25. Users will be reimbursed up to 50% of their stolen assets, while the remaining amount will be distributed as tokenized liability claims. Mixin aims to repurchase these claims in the future using its profits.

Before the incident, Mixin had nearly $400 million across 48 chains locked in its protocol, with over 9,544 BTC worth around $253 million. Mixin, founded in 2017, enables users to send digital assets through phone numbers and counts Chinese billionaire Xiaolai Li as one of its early angel investors.

Last updated 9/25/2023, 12:17:49 PM


Related Articles

Related Questions

News Letter

Subscribe to the CryptoCat.ai newsletter to stay updated with the latest cryptocurrency news, insightful articles, market trends, and more – delivered directly to your inbox!


Is email too old school? Well you can get your news directly on twitter just by following us