Mixin Network Announces 20 Million Dollars Bug Bounty Following 200 Million Dollars Hack

Crypto News- Mixin Network recently faced a severe security breach on its third-party cloud server database, resulting in the theft of approximately $200 million worth of digital assets. In an unconventional move, Mixin Network, a decentralized cross-chain protocol, has extended an olive branch to the hacker responsible for the breach by offering a substantial $20 million bug bounty. The message, sent within a transaction linked to the exploit, earnestly implores the hacker to return the funds, highlighting that the majority of the stolen assets rightfully belong to users.

Mixin Network Announces 20 Million Dollars Bug Bounty Following 200 Million Dollars Hack

The breach was officially confirmed by Mixin Network on September 25th. The company disclosed that the exploiters successfully infiltrated a third-party cloud service provider, resulting in the substantial loss of nearly $200 million in assets from their platform.

In response, Feng Xiaodong, the founder of Mixin, made a commitment to reimburse affected users, vowing to cover up to a maximum of 50% of their losses. The remaining portion would be refunded through bond tokens, repurchased by the company using its earnings.

While Mixin has not provided an exhaustive account of the exploit’s intricate details, an analysis from an on-chain platform has shed light on the hacker’s prior interactions with Mixin Network. Notably, the hacker-associated address, 0x1795, had received 5 Ether from Mixin in 2022.

The precise methodology employed by the exploiters to abscond with $200 million worth of assets remains shrouded in mystery. However, this incident underscores the vulnerabilities of cross-chain protocols within the decentralized finance (DeFi) domain.

DeFi has been a hotspot for some of the most significant crypto breaches in history, and cross-chain protocols, which enable seamless interactions between diverse blockchain networks, are frequent targets due to their substantial holdings spanning multiple chains. The cumulative toll of these vulnerabilities has resulted in losses exceeding a staggering $2.5 billion within the DeFi space.