Mixin Network Faces $200 Million Loss in Attack, XIN Token Plummets 10%

In the latest cyber attack to hit the DeFi space, the Mixin Network’s cloud service provider database was recently compromised.

The exploit has resulted in an estimated loss of assets worth approximately $200 million on the mainnet and, subsequently, the value of Mixin’s Native Token plummeting by almost 10%.

Mixin’s Team Responds Following Attack

Mixin’s team recently took to X, announcing that its Network’s cloud service provider database was compromised in the early hours of Sept. 23 Hong Kong time, leading to a temporary suspension of deposit and withdrawal services on the platform. The company further stated that they are currently working with Google and the blockchain security company SlowMist to investigate the breach.

[Announcement] 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. We have contacted Google and blockchain security company @SlowMist_Team…

— Mixin Kernel (@MixinKernel) September 25, 2023

In an attempt to mitigate the damage, the services will only be resumed once all vulnerabilities are confirmed and fixed. Mixin assured its users that transfers would not be affected during this period. The Mixin team also stated that they will announce a solution for handling the lost assets once it has been determined.

Furthermore, Feng Xiaodong, the founder of Mixin, is set to give an explanation during a public Mandarin livestream on Sept. 25, shedding light on the incident.

XIN Token Plummets

The news of the attack immediately impacted the market, causing the price of Mixin’s native token, XIN, to drop by about 10%. According to CoinGecko, XIN is currently trading at $194 at the time of writing. This drop in value follows a weekend high of around $216.

Additionally, the total value locked within the protocol has experienced a decrease of approximately $30 million following the attack. According to DeFiLlama, it now stands at $352 million.

This incident comes in the midst of a broader trend in the crypto space, with SlowMist’s weekly security report revealing seven security incidents in the past week alone, ranging from phishing attacks to rug pulls and DNS hijacking. The report emphasizes the urgent need for comprehensive security strategies for crypto protocols in an environment filled with diverse threats.