Mixin Network Suffers $200 Million Cryptocurrency Heist in Database Hack

Mixin Network, a Hong Kong-based peer-to-peer digital asset transactional network, has been hacked, resulting in the theft of around $200 million worth of cryptocurrency assets.

In an announcement made via X (former Twitter) on September 23, 2023, Mixin stated that in the early morning Hong Kong time, hackers attacked the database of their cloud service provider and drained assets from the platform's mainnet, primarily Bitcoin.

“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,” the platform announced.

Blockchain trackers estimate the hackers stole at least $90 million in Ethereum and over $20 million in Tether stablecoins, in addition to the stolen Bitcoin.

The cross-chain network relies on a centralized database that stores information on transactions, which the attackers were able to exploit. In response, Mixin has suspended all deposits and withdrawals temporarily.

The company stated they are working with Google and blockchain security firm SlowMist to investigate the cyber attack. Services will resume once vulnerabilities are fixed. Transfers on the network remain operational currently.

According to Mixin founder Xiaodong Feng, the network is considering compensating users for up to 50% of lost assets, with the remainder to be paid back through bond tokens purchased from platform profits.

Launched in 2017, Mixin Network had over 1 million users and $1.1 billion in top asset market value by July 2023. The platform enables fast, low-cost transfers between different blockchains and via phone numbers.

This incident marks the largest cryptocurrency theft disclosed this year, surpassing the $377 million stolen by North Korean hackers across various crypto platforms and companies. Mixin Network is working to enhance security and reimburse users after the devastating breach.