Mixin Network, a decentralised peer-to-peer network, suffered a loss of approximately $200 million due to a security breach compromising a third-party cloud service provider’s database.
On September 25, Mixin Network officially acknowledged the hack that occurred on September 23. Mixin Network promptly suspended all deposit and withdrawal services in response to the breach.
To investigate the incident and facilitate recovery efforts, Mixin Network enlisted the assistance of blockchain investigators SlowMist and Google. At the time of the hack, Mixin Network held $94.48 million in Ether, $23.55 million in Dai, and $23.3 million in Bitcoin, along with other cryptocurrencies, reported Cointelegraph.
An independent Web3 SaaS analytics platform 0xScope investigation revealed a historical connection between the hacker and Mixin Network. In 2022, the address 0x1795, associated with the hacker, received 5 ETH from Mixin Network, subsequently depositing it into Binance.
According to an analyst from 0xScope, the hacker converted the stolen Tether assets to Dai to prevent any freezing of the funds. The resumption of deposits and withdrawals on Mixin Network will depend on confirming and rectifying the vulnerabilities. As of now, details regarding plans to recover the lost assets for affected users were not immediately disclosed.
This is not the first time that cybercriminals have targeted crypto asset companies. In March this year, hackers attacked General Byte, a company that manages Bitcoin ATMs, and stole roughly $1.5 million worth of Bitcoins.
In June, Atomic Wallet was targeted, and the hackers stole $35 million in cryptocurrency. In December last year, BitKeep users were lured using fake apps and lost around $8 million.
At the time of writing, Mixin’s token saw a slight fall of about 2.8% and is priced at $200.88.
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