A recent $200 million hack on Hong Kong-based decentralized cross-chain transfer protocol, Mixin Network, has ignited a wave of controversy. The hack, which took place on Sept. 25, has led to discussions about the security of the protocol and the future of the stolen assets.
Bitcoin CEO claims theft could have been prevented
Zhuoer Jiang, the CEO of Bitcoin mining pool BTC.TOP, took to social media to express his views on the hack. He claimed that the stolen BTC should not have been vulnerable to theft in the first place. Jiang argued that Mixin's Bitcoin should have been stored in a cold storage, separate from the cloud server that was breached by hackers.
Critical breach and immediate response
The hack occurred on Sept. 23 when hackers breached the database of Mixin's cloud service provider. As a result, $200 million worth of assets on the platform's mainnet were lost. Mixin immediately suspended deposits and withdrawals, although transfers were allowed to continue during the investigation.
Founder promises compensation for affected users
Xiaodong Feng, the founder of Mixin Network, addressed the incident in a live briefing. He confirmed that the core asset stolen during the security incident was Bitcoin. To alleviate the losses suffered by users, Mixin's developers have pledged to compensate affected users with up to 50% of their stolen assets. The remaining amount will be distributed to users as "tokenized liability claims" that Mixin plans to repurchase with future profits.
Mixin's rise and notable investors
Founded in 2017, Mixin had amassed nearly $400 million across 48 chains locked in its protocol prior to the hack. The platform allows users to send digital assets to other individuals using phone numbers as identifiers. Notably, Chinese billionaire Xiaolai Li, an early Bitcoin enthusiast, is one of the earliest angel investors in Mixin Network.
