On September 23, 2023, early in the morning, the Hong Kong Times reported that hackers targeted Mixin Network’s cloud service provider, resulting in mainnet losses.
Mixin Network was launched in 2017 and offers lightning-fast peer-to-peer digital asset transactions, securing over $1B in value.
For now, the Mixin Network has already suspended the deposit and withdrawal services post-attack, with reported losses of $200 million. However, the Mixin Network seeks help from Google and security firm SlowMist for the investigation.
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Besides this, the services will resume after the node consensus and vulnerability fixes. But, the transfers will remain unaffected.
Despite Hong Kong’s efforts, it’s the second significant crypto hack this month. Mixin will reveal the asset recovery plan later, with founder Feng Xiaodong addressing the incident in a public livestream on September 25, 2023, at 13:00 HKT.
Feng Xiaodong, Mixin founder, announced compensation of up to 50% for affected users, with the rest paid in bond tokens repurchased from company profits.
Here is what he said next:
“We will summarize the content in English afterward for easy reference. We will try our best to minimize the losses and deeply apologize for this. Thank you, everyone, for your continuous support.”
Last year, it’s been reported that hackers swiped over $3.8 billion in cryptocurrencies, with North Korea-linked actors responsible for $1.7 billion.
Moreover, Hong Kong has rolled out crypto regulations to become a global hub, with rules effective since June 1 allowing licensed platforms to serve retail investors.