Mixin Network has fallen victim to a devastating hack that resulted in the loss of nearly $200 million in digital assets. Mixin’s vulnerability could be attributed to its centralized approach. This has sparked concerns over the safety of centralized databases in blockchain.
The Attack Unfolds
On the early morning of September 23, an attack compromised the database of Mixin Network’s cloud service provider. This incident led to substantial losses. Mixin Network acknowledged the breach following a report from SlowMist, a prominent blockchain security consultancy. This breach has sent shockwaves through the crypto community, raising alarms about centralized vulnerabilities.
As a consequence of the massive hack, Mixin Network has decided to suspend all deposits and withdrawals. This has left its users grappling with uncertainty. The platform’s founder, Feng Xiaodong, has promised to address the aftermath of the attack. However, specific solutions are yet to be disclosed.
Tracking the Stolen Assets
Blockchain analysts, such as PeckShield and Lookonchain, have managed to trace approximately $141 million of the stolen assets. This staggering sum comprises $93.5 million in ETH, $23.5 million in DAI (originating from USDT swaps), and $23.3 million in BTC. The scale of this heist has thrust it into the spotlight as one of the biggest crypto breaches of the year.
With the crypto world still reeling from a series of high-profile heists attributed to the Lazarus group, suspicion naturally falls on this North Korean hacking outfit. The Lazarus group, notorious for its prowess in cryptocurrency theft, has previously targeted platforms like Atomic Wallet, Alphapo, Stake.com, and CoinsPaid. They made off with an astounding $240 million this year alone. However, no concrete evidence connects the Mixin hack to the Lazarus group at this time.
Some might claim taht Mixin Network’s hack underscores the inherent risks associated with centralized databases and their susceptibility to malicious actors. Yet, what this event might show is the lack of certainty when it comes to fending off organized hacks.
