Peer-to-peer digital asset transactional network Mixin Network has suspended deposits and withdrawals after hackers stole $200 million.
The Hong Kong-based platform uses a cross-chain transfer protocol that enables cheaper and more efficient transfers, including via phone numbers, but relies on a centralized database, which was targeted by the attackers.
“In the early morning of September 23, 2023 Hong Kong time, the database of Mixin Network’s cloud service provider was attacked by hackers, resulting in the loss of some assets on the mainnet,” the platform announced.
Mixin Network also said that it has contacted Google and blockchain security firm SlowMist to aid with the investigation into the attack, and that deposit and withdrawal services are suspended.
“After discussion and consensus among all nodes, these services will be reopened once the vulnerabilities are confirmed and fixed. During this period, transfers are not affected,” Mixin announced.
The platform says that roughly $200 million worth of digital assets were drained from its mainnet, most of which represented Bitcoin.
According to blockchain trackers, however, the hackers stole at least $90 million in Ethereum and more than $20 million in Tether.
In a live briefing on Monday, Mixin founder Xiaodong Feng said that the network is currently considering compensating users for up to 50%, with the remaining to be paid in bond tokens that Mixin will repurchase using future profits.
Founded in 2017, the Mixin network had 26 full nodes at the end of July 2023, supporting 48 public blockchains. The platform said at the time that the top 100 assets on the network had a market value of $1.1 billion and that it had a user base of one million.
The Mixin Network incident is the largest crypto heist disclosed this year, after North Korean hackers stole at least $377 million worth of cryptocurrency from companies such as Atomic Wallet, Alphapo, CoinsPaid, Stake.com, and CoinEx.