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Mixin Network Founder Addresses $200 Million Hack, Says Only Half of User Assets are Safe

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Mixin Network’s founder Feng Xiaodong addressed the $200 million hack in a livestream saying that they could initially ensure the security of only half of its users’ assets.

Mixin Network revealed a massive hack earlier today on the database of its cloud service provider, compromising users’ assets worth $200 million.

“No matter what your assets are — whether it’s Bitcoin or Ethereum — we will ensure that half of it is unaffected. We’re trying to find a way to recover the compromised money, but that is very difficult,” Feng stated. 

Feng further revealed that the damaged assets were mainly Bitcoin core assets, and assets such as BOX and XIN were not affected.. 

Mixin Network Considering Issuing “Bond Tokens”

For the remaining assets affected by the breach, Mixin Network is contemplating the issuance of “bond tokens” that users can claim, with plans to repurchase them in the future. 

Additionally, the company intends to establish a new system to host user assets, presumably with enhanced security measures.

In response to the hack, Mixin Network temporarily suspended deposit and withdrawal services. 

The situation prompted an investigation, with blockchain security firm SlowMist joining forces to assist in the probe. 

SlowMist revealed that the attack targeted the Mixin Network cloud service provider database.

These developments have had an impact on Mixin’s native token, XIN, which experienced an 9% decline over the past 24 hours, trading at $193 at the time of writing, as per CoinGecko data.

As Mixin Network continues to grapple with the aftermath of the security breach, users remain watchful for updates and solutions to secure their assets and restore confidence in the platform’s security measures.