$200M Mixin Network hack draws controversy

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Hong Kong-based decentralized cross-chain switch protocol Mixin Community is drawing controversy over the disclosure of a $200 million hack on Sept. 25.

In a post on Sept. 25, Zhuoer Jiang, CEO of Bitcoin mining pool BTC.TOP, claimed that BTC saved within the Mixin protocol “ought to have by no means been stolen within the first place.” Jiang claims that, usually, Mixin’s Bitcoin (BTC) would have been “stored in chilly storage” and remained unaffected by the cloud server hack compromising Mixin’s scorching wallets. Throughout its final month-to-month report in July, Mixin disclosed a complete of 9,544 BTC, price roughly $253 million, saved in its protocol. 

On Sept. 23, Mixin’s cloud service supplier’s database was breached by hackers, ensuing within the lack of $200 million in belongings on its mainnet. Deposits and withdrawal providers had been instantly suspended on the protocol. Nonetheless, builders stated transfers wouldn’t be affected because the investigation continues.

Throughout a dwell briefing on Sept. 25, Xiaodong Feng, Mixin’s founder, said that Bitcoin was “the core asset” stolen through the $200 million security incident and that builders would compensate customers “as much as a most of fifty%” on the stolen belongings. In line with Feng, the rest can be distributed to customers within the type of “tokenized legal responsibility claims” that Mixin would ultimately repurchase “with its future income.”

Based in 2017, Mixin had almost $400 million throughout 48 chains locked in its protocol earlier than the incident, as per data offered by DeFiLlama. The protocol permits customers to ship digital belongings to different people by way of cellphone numbers. Xiaolai Li, a Chinese language billionaire and early Bitcoin fanatic, is among the earliest angel traders within the agency. 

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