Crypto firm Mixin has announced a $200 million hack, which has left the platform’s deposit and withdrawal services temporarily suspended. The company said it would reopen these once it could “confirm and fix any vulnerabilities.” It has also contacted Google and blockchain security firm SlowMist to assist with the investigation.
According to the announcement, hackers targeted the database of the cloud service provider of the decentralized Mixin Network. This resulted in the loss of assets on its mainnet.
The company’s native token, XIN, fell by around 8.5% following the announcement. In addition, its total value locked (TVL) dipped by $30 million. Mixin describes itself as a network for transferring digital assets backed by the blockchain Ethereum. In its latest monthly report, the company reported that the top 100 assets on its network have a combined value of more than $1.1 billion.
However, the company has previously been criticized for relying on a centralized database. This creates a single point of failure, which may have contributed to the breach.
The firm reportedly discovered the theft on September 23, and it estimated that it lost assets worth around $200 million. Peckshield, a crypto analytics website, approximated the losses as being spread across various blockchains, including Ethereum and Binance Smart Chain.
Mixin said the attackers could access its hot wallets and steal several cryptocurrencies. These included ERC20 tokens, EOS, and those on the Ethereum Classic and Binance Smart Chain networks. It added that deposits and withdrawals on its platform are unaffected, but it has temporarily halted these to prevent further losses.
In its announcement, Mixin Network said it notified Google and blockchain security company SlowMist to help investigate. The company also said it had stopped deposit and withdrawal services to safeguard users’ assets, though transfers continue to be possible. It will reopen these once the team can confirm and fix any vulnerabilities.
Despite losing assets, the company remains optimistic about its prospects. It pointed out that it aimed to expand into other areas, such as blockchain-based music and gaming.
The news follows recent crypto and decentralized finance (DeFi) firms attacks. In the past week alone, hacks have hit CoinEx and Balancer. These have been blamed on a rising trend of malware and phishing attacks to steal user funds. As a result, several crypto exchanges have recently increased their security measures. In particular, CoinEx is now requiring users to download anti-virus software to protect their computers. Other exchanges are considering similar measures to strengthen their security. The current bear market has seen a significant drop in prices for most major cryptocurrencies, including bitcoin. However, some experts believe the market is due for a big rebound later this year. Whether that will boost the broader cryptocurrency market remains to be seen.
