Mixin Network Faces Loss Of Nearly $200 Million In Cyberattack

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Mixin Network has confirmed the findings of SlowMist, a notable blockchain security consultancy, regarding a significant security breach resulting in a staggering loss of nearly $200 million. The incident occurred in the early hours of September 23 when hackers targeted the database of Mixin Network’s cloud service provider, leading to a substantial loss of assets on the mainnet.

Mixin Network, addressing the breach, stated, “The funds involved are approximately $200 million,” as reported by Coindesk.

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Mixin Network, a service resembling a layer-2 protocol, is crafted to enhance the efficiency and cost-effectiveness of cross-chain transfers. However, as observed and highlighted by numerous individuals on Twitter, a critical vulnerability lies in its reliance on a centralised database, creating a singular point of failure.

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A glance at the monthly report from July reveals that the top 100 assets residing on the Mixin Network boast a cumulative value just surpassing $1.1 billion. During July, the network witnessed an impressive count of 663,489 unique monthly transactions involving bitcoin (BTC), along with 179,647 transactions related to ether (ETH).

In response to this breach, the founder of Mixin Network is scheduled to address the situation via a live stream soon. For now, there has been no further official communication.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

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