The blockchain realm is no stranger to security breaches and one such flagrant incident was recently aired by Mixin Network’s founder, Feng Xiaodong, who disclosed through a livestream a devastating $200 million hack on the database of the network’s cloud service provider. In this incident, a seeming lapse in safeguard led to users’ digital assets being compromised in unprecedented proportions.
In an effort to quell rising uncertainty among its user-base, Feng assured that, regardless of the nature of the compromised assets – be they Bitcoin or Ethereum, Mixin Network could guarantee the security of at least half of these holdings. Meanwhile, diligently working behind the scenes towards recovery of the affected funds, Feng acknowledged the inherent challenge in such a process.
Interestingly, the brunt of the damage was borne by Bitcoin core assets, while other assets such as BOX and XIN remained unscathed. The silver lining in this otherwise murky cloud appears in the form of remedial measures being considered by the Mixin Network.
In an innovative move to alleviate the loss incurred by the remaining compromised assets, Mixin Network is toying with the idea of issuing “bond tokens”. The intention behind such a measure would be to allow claimants to subsequently repurchase these tokens, thus establishing a form of indirect reimbursement.
Further, Mixin Network hinted at the establishment of a stronger system to guard user assets, ostensibly furnished with enhanced security measures. As a reactionary step to the security breach, deposit and withdrawal services were temporarily put on hold by the platform.
Stepping into the fray, blockchain security firm SlowMist offered their expertise in a bid to aid Mixin Network’s investigation into the hacking incident. According to SlowMist, Mixin Network’s cloud service provider database was the focus of the attack.
This unnerving episode has undeniably cast a pall over Mixin’s native token, XIN, leading to a 9% dip in its value, trading at $193, according to CoinGecko’s real-time data. As Mixin Network now grapples with restoring faith in its security measures while ensuring recovery of their user’s assets, the eyes of the world remain riveted on how effectively they navigate through this detour and mend their cybersecurity fences.
Source: Cryptonews
