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Vladislav Sopov

Mixin Network, Hong Kong-based decentralized L1, halts deposits and withdrawals due to attack on ‘cloud provider’

The cryptocurrency community is discussing what might be the largest hack in Web3 in recent months. Blockchain network Mixin reports the losses of $200 million due to issues with “cloud services.”

Hong Kong blockchain Mixin drained for $200 million: Here’s what likely happened

Mixin Network announced that its cloud service provider was attacked by hackers. The net amount of mainnet assets lost might total $200 million in equivalent. This is half of the net TVL of all Mixin-based protocols, as per recent data. All deposits and withdrawals on Mixin are on hold, the official statement says.

Mixin founder Feng Xiaodong is going to address this incident in a public livestream at 1:00 p.m. HKT on Sept. 25, 2023, Mixin representatives added.

Cryptocurrency engineers and investors are guessing at how issues with the cloud services provider could have ruined a network that pretended to be totally decentralized.

Blockchain veteran Mikko Ohtamaa supposes that some cloud provider was responsible for key storage. However, some other commentators are mocking “database issues” that resulted in a huge volume assets lost. Also, theories about a North Korean hacker or inside manipulation (“rug pull”) are circulating on X (formerly Twitter).

Leading blockchain security company SlowMist and Google Cloud platform are assisting the Mixin team in the ongoing investigation

XIN token declines

Surprisingly, Mixin’s core cryptocurrency XIN has not demonstrated a notable plunge. So far, XIN token is down by 6%, the asset is changing hands at $193 on exchanges, nearing 2023 lows.

Thanks to halted operations, key network metrics also have not changed much: aggregated TVL is sitting at $394 million, holding its position in the top 10 smart contract platforms.

Mixin Network is home to eight decentralized protocols, including DEXes, liquid staking providers and a perpetuals trading platform. Should the initial information be confirmed, the hack appears to be the largest incident in crypto in 2023.

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