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Mixin Network Faces Major Security Breach, Nearly $200 Million Lost

Sep 25, 2023 at 10:13 am

Mixin Network, positioned as a solution to scalability hurdles in the realm of blockchain technology, employs a unique approach. However, it does so at the trade-off of relying on a centralized database.

Recent accounts have confirmed a breach within Mixin Network, a key player in the blockchain arena, culminating in losses nearing a staggering $200 million. This revelation was first brought to light by SlowMist, a reputable blockchain security consultancy.

According to a formal statement by Mixin Network, the breach occurred in the early hours of September 23, specifically targeting the database of their cloud service provider. Regrettably, this event resulted in the loss of a significant portion of assets on the mainnet, amounting to approximately US$200 million.

At its core, Mixin Network operates much like a layer-2 protocol, primarily focused on expediting and cost-effectively facilitating cross-chain transfers. Nevertheless, a noteworthy concern, as echoed by numerous voices on Twitter, arises from its reliance on a centralized database, potentially exposing a vulnerability.

The July monthly report shed light on the combined value of the top 100 assets within the Mixin Network, slightly surpassing an impressive $1.1 billion. Additionally, the company supplied figures indicating 663,489 unique monthly transactions involving Bitcoin (BTC) and 179,647 transactions involving Ethereum (ETH) throughout July.

The founder of Mixin Network is slated to deliver a live-streamed address later in the day, offering further insights into the incident and outlining the measures being taken in response. This update promises a clearer understanding of the situation and the proactive steps being undertaken to rectify it.

Read more: BTC Market Insights: Sept 20 & Beyond

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