$20 Million Bug Bounty Reward By Mixin Network

Mixin Network, a cross-chain service, has faced a significant security breach recently. An attacker managed to exploit the platform, making off with a staggering $200 million over the weekend. In response to this unprecedented breach, Mixin Network has taken a noteworthy step to recover its users’ funds and restore confidence in its security measures. They have announced a generous $20 million “bug bounty reward” for the individual responsible for the attack.

As a result of the security incident, Mixin Network temporarily suspended deposits and withdrawals to assess the damage. Initially, it was believed that approximately half of the users’ assets remained secure. However, further evaluation revealed that the losses were not as severe as initially estimated.

Mixin Network shared an official update on a social media platform, stating, “We have completed most of the asset tally work, and the situation is much more optimistic than expected. The losses are not as significant as estimated. Again, we remind everyone to avoid making transactions, market making, etc., on Mixin Network, for now, to prevent unnecessary losses.”

To recover a significant portion of the assets held on their platform, Mixin Network extended an olive branch to the attacker, expressing hope for the return of user funds. They offered the individual a $20 million “BUG Bounty Reward for the BUG” and provided contact details for the reward process, urging the hacker to reach out via [email protected]. This announcement came to light through the blockchain security firm PeckShield.

The decision by Mixin Network to offer such a substantial bounty underscores the gravity of the situation. It’s worth noting that the security breach targeted Mixin Network’s cloud service provider database, as confirmed by security firm SlowMist, which reported the attack occurring on a Saturday.

Mixin Network promptly acknowledged the security incident and initiated contact with both Google and SlowMist to collaborate on an investigation into the breach. They emphasized their unwavering commitment to security, assuring users that services would resume once vulnerabilities were confirmed and adequately addressed. Importantly, they highlighted that transfers would remain unaffected during the investigation.

This breach at Mixin Network follows similar exploits affecting other cryptocurrency projects that rely on third-party providers. Within a week, both OpenSea and Nansen experienced security breaches tied to their vendors. While the exact connection between these incidents remains unclear, Nansen has urged the third-party vendor to publicly disclose the breach.

In a subsequent livestream, Mixin founder Feng Xiaodong shed light on the ongoing recovery efforts. He acknowledged the challenges ahead, stating, “We can only ensure at least half of the assets are secure for now. No matter what your assets are—whether it’s bitcoin or ether—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 hinted at the possibility of issuing “bond tokens” for affected users, with plans for a future buyback.

As a consequence of the security breach, Mixin’s native token, XIN, has witnessed a decline of approximately 25% in its value, currently trading at $163.37, according to CoinGecko Mixin price data. This incident serves as a stark reminder of the persistent security challenges within the cryptocurrency space and underscores the importance of implementing robust security measures to safeguard user assets.