Mixin Network Offers $20M Bounty to Hacker for Return of Stolen $200M Assets
Summary:
The Mixin Network has proposed a $20 million bug bounty to the hacker responsible for the recent theft of about $200 million from the platform. Most stolen assets belonged to Mixin users. The decentralized cross-chain platform traced the breach back to a third-party cloud service provider. Reports suggest that such cross-chain platforms in the DeFi space are often the targets of major crypto thefts.
In a unique move to recoup stolen assets, the decentralized cross-chain platform Mixin Network has proposed a $20 million bug bounty to the thief who took approximately $200 million in a recent hack. The plea, encrypted in a transaction communication to the hacker, calls for the return of the stolen assets, most of which belonged to Mixin users, in exchange for a substantial reward. Mixin verified the breach on September 25, tracing it back to an infringement of a third-party cloud service provider which led to the massive pilferage.
Mixin's founder, Feng Xiaodong, vowed to compensate affected users up to 50% of their losses, with the rest given as bond tokens that would be bought back by the company with its earnings. Mixin is yet to disclose a complete account of the hack, but a blockchain analysis platform has uncovered a history of transactions between the hacker and Mixin Network. In 2022, for example, the hacker-affiliated address 0x1795 reportedly received 5 ETH from Mixin.
Attempting an understanding of such a huge theft still remains a blur. However, it's noteworthy that decentralized finance's (DeFi) cross-chain protocols have historically been victim to the largest cryptocurrency thefts. Reports suggest that more than half of all DeFi breaches happen on cross-chain platforms, leading to over $2.5 billion in losses.
These protocols primarily aid in the transfer of assets between various blockchains. Hence, as they often host a large volume of assets from multiple chains, susceptibility to such breaches increases.
Published At
9/27/2023 8:53:45 AM
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