Mixin Network
From Invertopedia, the encyclopedia of how things fail
Mixin Network is a cross-chain transactional network for digital assets[2]. In the early hours of September 23, 2023, Hong Kong time, hackers attacked the database of its cloud service provider, and Mixin put the funds involved at about $200 million[1]. It suspended deposits and withdrawals while it investigated with Google and SlowMist[2].
What happened
| Jul 2023 | The mainnet runs on 26 full nodes and holds $1.1 billion in assets.[2] |
|---|---|
| Sept 23, 2023 | Hackers attack the database of Mixin's cloud service provider.[1] |
| Sept 25, 2023 | Mixin discloses the loss and suspends deposits and withdrawals.[2][1] |
The kill shot
The network's money sat behind a centralized cloud provider's database, a single point of failure for a project that called itself decentralized.
Users on X pointed to the project's reliance on a centralized frontend[2]. Mixin's team said it could vouch for only half the assets in question being secured[3]. Bitdefender reported that roughly $141 million had been identified[1].
The inversion
Decentralized nodes do not help if the keys or records behind them live in one vendor's database.
References
- ^ “Mixin Network Reports $200 Million Security Breach”. Bitdefender, September 26, 2023. Mixin's statement and the $141 million traced.
- ^ “Mixin halts withdrawals as network suffers $200M loss in hack”. Blockworks, September 25, 2023. Suspension, Google and SlowMist, $1.1B assets, 26 nodes and the decentralization criticism.
- ^ “Mixin Network Loses $200 Million in Hack”. Unchained, September 25, 2023. SlowMist alert and the founder's livestream.