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All data stored on Google Cloud? Mixin Network, once endorsed by Li Xiaolai, hacked with a loss of $200 million

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All data stored on Google Cloud? Mixin Network, once endorsed by Li Xiaolai, hacked with a loss of $200 million

The blockchain security firm SlowMist announced on the morning of the 25th that the cloud service provider database of the public chain Mixin Network was attacked on September 23, with the amount involved reaching approximately 200 million US dollars. SlowMist is currently assisting in the investigation.

Note: Mixin founder Feng Xiaodong's response during the live broadcast has been updated at 14:00.

Mixin Confirms $200 Million Hack

About half an hour later, Mixin tweeted to acknowledge that its cloud data was indeed hacked in the early hours of the 23rd, resulting in the loss of some assets on the main network. Mixin has already contacted Google and SlowMist for assistance in the investigation and confirmed that the funds involved amounted to about $200 million.

Mixin Founder Feng Xiaodong to Explain Live

Mixin currently suspends deposits and withdrawals on the chain and has reached a consensus with all nodes. Once the vulnerability is fixed, services will be restarted.

As for the substantial loss of assets, Mixin will announce a solution later, and founder Feng Xiaodong will explain the incident live at 1:00 PM Taiwan time on September 25th.

Crypto Twitter Mocks Mixin

Mixin describes itself on Twitter as "a free, lightning-fast, decentralized network for digital asset transfers."

As a result, the crypto community is quite puzzled because a public chain claiming to be decentralized was hacked due to all data being stored on a centralized cloud service provider.

Liu Xiaolai Previously Endorsed Mixin

The hack of Mixin is particularly sensitive to the Chinese crypto community as controversial figure Liu Xiaolai had previously endorsed Mixin.

In its early days, Mixin's main product was a wallet, including features like signing in to receive BTC and Liu Xiaolai constantly promoting dollar-cost averaging BTC in the wallet. These marketing activities raised suspicions in the community that Mixin might be a scam.

Early statements made by Jiang Zhuoer, the founder of Leibite Mining Pool B.TOP, were also brought up by Wu Said founder Colin Wu:

Do you think BTC is stored on Mixin's chain? Sorry, what Mixin stores is only tokens that can be exchanged for BTC by the operator. If the operator doesn't exchange them/runs away/gets seized/stolen/goes bankrupt, your BTC is gone.

The crypto community thenmocked this, asking if they were helping hackers dollar-cost average?

Amount Involved Accounts for Nearly 60% of Mixin TVL

According to DefiLlama, although Mixin's ecosystem only has 10 protocols, its $351 million TVL still ranks 10th among all public chains.

After the security incident was reported, TVL dropped from around $386 million to $351 million. However, if the amount affected is indeed $200 million, it will deal a significant blow to Mixin's ecosystem.

Mixin Founder: Can Only Compensate 50%

According to PANews, Feng Xiaodong stated in the live broadcast that the assets primarily hacked in this incident were BTC, not BOX or XIN, and the details of the attack cannot be disclosed at this time.

In addition, Mixin can only compensate up to 50% of the assets, with the remaining amount to be compensated to users in the form of bond tokens, and the official promise to buy back with profits in the future.