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Mixin Network Attacked for $200M in Latest DeFi Exploit

2 mins
Updated by Kyle Baird
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In Brief

  • On Sept 23, the database of Mixin Network's cloud service provider was attacked by hackers resulting in $200M loss.
  • Mixin offers a high-speed peer-to-peer transactional network for digital assets, its TVL has dropped $30M
  • Mixin’s native token, XIN, has fallen 8.5% over the past 24 hours as news of the attack spreads. 
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The crypto bear market has not deterred cyber criminals who continue to target crypto and DeFi platforms. The latest one to be attacked is the high throughput blockchain platform Mixin Network.

On September 23, the Mixin Network’s cloud service provider database was attacked by hackers. Moreover, this resulted in the loss of around $200 million, according to Mixin Kernel, which reported the incursion on September 25.

DeFi Exploit Season

The team stated that they have contacted Google and blockchain security company SlowMist to assist with the investigation. 

Deposit and withdrawal services on the Mixin Network have been temporarily suspended, it added. Moreover, the team said that services would be reopened once the vulnerabilities were confirmed and fixed but did not provide further details.

Mixin founder Feng Xiaodong will explain this incident in a livestream at 13:00 HKT on September 25, the team said. Additionally, they added that an English language version will follow. 

Some observers pointed out that Mixin, a decentralized network, relied on a centralized database, which became the point of failure. 

Moreover, the protocol total value locked has fallen around $30 million since the attack. It is currently $352 million, according to DeFiLlama

Mixin offers a high-speed peer-to-peer transactional network for digital assets. Furthermore, it enables other blockchain-distributed ledgers to gain high transactions per second, fast confirmations, and zero transaction fees. 

In its weekly security report, SlowMist detailed seven security incidents over the past week, not including Mixin. 

“The week observed an unsettling rise in multifaceted attack methods, from phishing to rug pulls and DNS hijacking.”

Finally, it concluded that the diversity of these attacks underlined the crucial necessity for comprehensive security strategies for crypto protocols.

XIN Prices Tank

Mixin’s native token, XIN, has fallen 8.5% over the past 24 hours as news of the attack spreads. 

XIN was trading at $195 at the time of writing, falling from a weekend level of around $216.

XIN Price in USD 1 day. Source: BeInCrypto
XIN Price in USD 1 day. Source: BeInCrypto

Furthermore, XIN is currently down 90.7% from its January 2018 all-time high of $2,095. It failed to recover half of its peak price during the 2021 bull market. 

Additionally, the latest DeFi exploit follows attacks on Linear Finance and Balancer last week.  

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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