Mixin Network (XIN), a protocol aimed at mitigating blockchain scalability issues, fell victim to a cyberattack that resulted in losses of close to $200 million.
Mixin Network Suffered a Major Cyber Attack worth $200 Million
Hackers targeted the database of Mixin Network's cloud service provider, causing assets on the main network to be depleted. “The funds in question are approximately US$200 million,” Mixin Network said in an official statement.
After the cyber attack, the price of Mixin dropped to $192.
Mixin Network functions as a layer-2 protocol-like service strategically designed to facilitate cost-effective and streamlined cross-chain transfers.
However, as widely noted on social media platform Twitter, the weakness of this system lies in its dependence on a central database, which leaves a single vulnerable point open to such attacks.
According to a comprehensive monthly report from July, the total value of the top 100 entities operating on Mixin Network is just over $1.1 billion.
The company also achieved significant transaction volume, reporting 663,489 unique Bitcoin (BTC) transactions and 179,647 Ethereum (ETH) transactions during the same period.
This significant security breach serves as a stark reminder of the ongoing challenges and vulnerabilities in the blockchain and cryptocurrency landscape, underscoring the critical need for increased security measures and robust protocols to protect digital assets.
*This is not investment advice.
