Hong Kong-based cryptocurrency company Mixin is reeling from a major security breach, announcing on Sunday that hackers had successfully pilfered approximately $200 million in digital assets. The incident marks the most substantial crypto theft of 2023, surpassing the previous record held by Euler, a crypto lending platform, which lost around $197 million in a March attack, according to data compiled by Rekt, an organization specializing in tracking crypto-related security incidents.
The hack occurred during the early hours of September 23, 2023, Hong Kong time, when Mixin Network’s cloud service provider’s database fell victim to a cyberattack. In response, Mixin promptly suspended all deposit and withdrawal services on its network. The company shared the news via its social media platform, X (formerly known as Twitter), where it stated, “Deposit and withdrawal services on Mixin Network have been temporarily suspended. After discussion and consensus among all nodes, these services will be reopened once the vulnerabilities are confirmed and fixed.”
Mixin has taken a proactive approach to address the situation, enlisting the assistance of industry giants Google and crypto security firm SlowMist to conduct a thorough investigation into the breach. Google spokesperson Melanie Lombardi confirmed the involvement of Mandiant, a cyber incident response firm acquired by Google last year, in an email to TechCrunch.
Mixin Network, described by the company as an “open and transparent decentralized ledger, which is collectively booked and maintained by 35 mainnet nodes,” operates as a decentralized exchange and cross-chain network, facilitating the seamless transfer of digital assets. The firm has emphasized its commitment to open-source software that prioritizes security, privacy, and decentralization.
Despite its decentralized nature, the exact method employed by the hackers to abscond with the substantial sum of digital assets remains unclear. Mixin, SlowMist, and Google have yet to provide detailed insights into the breach.
In the wake of the breach, Mixin announced that it intends to reveal an unspecified “solution” to address the stolen assets at a later date. The crypto community eagerly awaits further developments and a resolution to the security incident that has sent shockwaves throughout the industry.