The native token of the protocol experienced a significant drop, falling well below the $200 mark.
In the most recent cyber attack targeting the DeFi sector, the database of Mixin Network’s cloud service provider was compromised.
This exploit has resulted in an estimated loss of assets valued at approximately $200 million on the mainnet. Subsequently, the value of Mixin’s Native Token has plummeted by nearly 10%.
Response from Mixin’s Team Following the Attack:
The Mixin team recently made an announcement on X (Twitter), revealing that their network’s cloud service provider database was compromised during the early hours of September 23, Hong Kong time. This incident led to a temporary suspension of deposit and withdrawal services on the platform. The company has stated that they are currently collaborating with Google and the blockchain security company SlowMist to investigate the breach.
In an effort to mitigate the damage, services will only be resumed once all vulnerabilities have been confirmed and fixed. Mixin has assured its users that transfers will not be affected during this period. The Mixin team has also stated that they will unveil a solution for handling the lost assets once it has been determined.
Furthermore, Feng Xiaodong, the founder of Mixin, is scheduled to provide an explanation during a public Mandarin livestream on September 25, shedding light on the incident.
XIN Token Faces a Steep Decline:
The news of the attack immediately had an impact on the market, causing the price of Mixin’s native token, XIN, to drop by approximately 10%. According to CoinGecko, XIN is currently trading at $194 as of the time of writing. This drop in value follows a weekend high of around $216.
Additionally, the total value locked within the protocol has seen a decrease of roughly $30 million following the attack, now standing at $352 million according to DeFiLlama.
This incident occurs within a broader context in the crypto space, as SlowMist’s weekly security report reveals seven security incidents in the past week alone, ranging from phishing attacks to rug pulls and DNS hijacking. The report underscores the pressing need for comprehensive security strategies for crypto protocols in an environment filled with diverse threats.