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Mixin Network Hack Leaves Uncertainty Over Asset Protection

Founder pledges to safeguard half of users' assets, while fate of remaining funds remains unclear

Mixin Network founder Feng Xiaodong addressed the staggering $200-million hack at the decentralized wallet service provider.

Half of users assets would be protected, he explained. It remains unclear, however, what the fate is of the other half of the assets.

“No matter what your assets are — whether it’s Bitcoin or Ethereum — we will ensure that half of it is unaffected,” said Feng in a live stream on Twitch.

“We’re trying to find a way to recover the compromised money, but that is very difficult,” he added.

GettyImages-1664915117.jpg
In this photo illustration a Bitcoin logo is displayed on a smartphone and in the background. Hackers on Sep. 23 targeted the database of Mixin Network’s cloud service provider, leading to substantial asset losses on the mainnet. OMAR MARQUES/SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES. 

This revelation has intensified concerns among the platform’s users, many of whom are still grappling with the magnitude of the breach.

This incident, coming just weeks before the much-anticipated Future of Digital Assets conference on Nov. 14, underscores the pressing challenges the digital asset industry faces. Such events emphasize the importance of robust security measures and the need for continuous dialogue on best practices in the rapidly evolving crypto landscape.

Mixin is exploring the idea of issuing “bond tokens” for affected users. Users would claim these tokens and Mixin would commit to repurchasing them in the future.

In a bid to rebuild trust and enhance security, Mixin also plans to establish a new system dedicated to hosting user assets, signaling a proactive approach to prevent future breaches.

GettyImages-1664915117.jpg
In this photo illustration a Bitcoin logo is displayed on a smartphone and in the background. Hackers on Sep. 23 targeted the database of Mixin Network’s cloud service provider, leading to substantial asset losses on the mainnet. OMAR MARQUES/SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES. 

Hackers on Sep. 23 targeted the database of Mixin Network’s cloud service provider, leading to substantial asset losses on the mainnet.

In the wake of the attack, Mixin has temporarily halted deposit and withdrawal services.

The company is collaborating with Google and blockchain security firm @SlowMist_Team to investigate the breach. Services will resume once vulnerabilities are identified and rectified. Notably, transfers remain unaffected during this period.

© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.

Produced in association with Benzinga

Edited by Judy J. Rotich and Newsdesk Manager

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