Mixin network loses $200M in attack of its cloud provider Mixin network loses $200M in attack of its cloud provider

Mixin network loses $200M in attack of its cloud provider

The total value of assets locked on Mixin declined by more than $30 million following the incidence.

Mixin network loses $200M in attack of its cloud provider

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Decentralized protocol Mixin Kernel reported a loss of approximately $200 million in digital assets due to a security breach at an unnamed cloud services provider. The breach occurred on Sept. 23 and was confirmed in a Sept. 25 post on social media platform X (formerly Twitter).

The network’s team said it had engaged Google and blockchain security experts at SlowMist to investigate the incident. SlowMist confirmed that it was assisting in the investigations in a separate post on X.

In response to the incident, Mixin Kernel temporarily suspended deposit and withdrawal services on its network. These services will resume once all vulnerabilities have been identified and successfully addressed, while asset transfers within the network remain unaffected.

The protocol has yet to determine a course of action regarding the stolen assets, with the final decision contingent on the successful recovery of the funds.

Meanwhile, the protocol said its founder, Feng Xiaodong, would provide further updates about the incident in a public Mandarin livestream at 13:00 HKT.

Community reacts

The breach has sparked significant community interest and concern, as the compromise of a decentralized network’s database raises questions about its security level and “decentralization.”

Prominent blockchain analyst ZachXBT expressed surprise at the scale of the hack, highlighting this as another nine-figure security breach where hackers absconded with all liquid assets.

In response to the breach, Mixin’s native XIN token experienced an 8.1% drop in value over the past 24 hours. Currently trading at $194.98, this represents a substantial decline from its all-time high of $2,095. The token’s future value is uncertain and may further depreciate if the stolen funds are not recovered.

Besides that, data from DeFillama shows that the total value of assets locked on the protocol experienced a sharp decline during the early hours of today. The data aggregator’s dashboard shows Mixin’s TVL fell to $351.9 million from $383.54 million.

Posted In: DeFi, Hacks