Mixin Kernel Suffers $200M Drain: Here’s What Happened

• Wallet solution Mixin Kernel suffered a cyberattack.
• Withdrawals and deposits have been temporarily suspended on the network.
• Mixin reassured users that it had opened an investigation.

The year 2023 has seen a dramatic surge in cyberattacks and hacks targeting the cryptocurrency industry, leaving few projects or networks untouched. This year alone, the cumulative losses inflicted by malicious actors have surpassed $920 million, highlighting the growing vulnerability of blockchain projects and networks.

The latest and perhaps most prominent casualty in this recent wave of virtual assaults is Mixin Network, a decentralized wallet solution for transferring digital assets.

Hackers Mixin It Up?

In a tweet on September 25th, Mixin Kernel announced that its network’s cloud database service provider had fallen victim to a cyberattack.

According to blockchain security firm SlowMist, the hack occurred in the early hours of September 23rd in the wake of a security breach. The breach compromised Mixin’s mainnet, resulting in the loss of a staggering $200 million in liquid assets.  

Mixin Kernel responded by enlisting the expertise of the blockchain security teams at SlowMist and Google to assist in its investigation of the hack. The firm further announced extra security measures, including temporarily suspending some of its services.

Priority on Minimizing Losses

To safeguard user assets, Mixin Kernel immediately halted deposit and withdrawal services. The network assured users that transfer operations remain unaffected. The firm reaffirmed that suspended services will be resumed after the vulnerabilities have been resolved and a consensus has been achieved among all nodes. 

Mixin added that a designated team would provide more information regarding the lost assets later but emphasized its commitment to minimizing losses and facilitating recovery. 

The founder of Mixin, Feng Xiaodong, is set to publicly address the incident via a Mandarin livestream at 13:00 HKT on September 25, 2023. 

On the Flipside

• South Korean exchange Upbit also suffered a major scam attack on September 24th, as hackers bypassed its authentication system to deposit fake assets into users’ wallets.
• Chinese KOL Li Xiaolai promotes Mixin Kernel and supports 48 public chains with a total network asset value of over US$1 billion.
• Users suggest the infamous North Korean-backed Lazarus Group may be behind the incident.

Why this matters

The Mixin Network hack is a stark reminder that the battle for security within the industry is ongoing and underscores the need for robust protective measures to safeguard enthusiasts and investors alike. 

Find out details of the South Korean exchange scam:
Fake APT Tokens Flood Upbit Accounts: Exchange Seeks Refunds 

European asset management company to offer crypto assets to qualified U.S. investors. Read more:
CoinShares Dives into the US with Investment Opportunities