Mixin Network offers $20M bug bounty to hackers in $200M hack

Mixin Community, a decentralized cross-chain protocol, in a message to the hacker behind the $200 million exploit on Sept. 23 has provided a $20 million bug bounty for the return of the remaining funds.

Mixin Community encrypted the message with the exploiter transaction requesting the exploiter to return the funds as nearly all of the stolen funds have been consumer property.

“Most of our platform property have been customers, and we hope you may refund them. You’ll be able to hold $20M of the property as a BUG Bounty Reward for the BUG.”

Mixin Community confirmed the exploit on Sept. 25 claiming the exploiters managed to breach a third-party cloud service supplier ensuing within the theft of almost $200 million of property from the platform.

[Announcement] Within the early morning of September 23, 2023 Hong Kong time, the database of Mixin Community’s cloud service supplier was attacked by hackers, ensuing within the lack of some property on the mainnet. We now have contacted Google and blockchain safety firm @SlowMist_Team…

— Mixin Kernel (@MixinKernel) September 25, 2023

Feng Xiaodong, the founding father of Mixin, mentioned on the time that the corporate would reimburse affected customers as much as a “most of 50%,” with the remaining quantity being handed again in bond tokens that the enterprise would then repurchase with its earnings.

Mixin is but to supply full particulars about what led to the exploit however an on-chain analytic platform highlighted a historical past of the hacker’s interactions with Mixin Community. The hacker-associated tackle 0x1795 acquired 5 ETH from Mixin in 2022.

Associated: Remitano trade hacked for $2.7M; $1.4M frozen by Tether

Whereas it’s nonetheless unclear how the exploiters managed to steal $200 million price of property by means of an information breach, cross-chain protocols within the decentralized finance area have been the goal of a number of the greatest exploits in crypto historical past. One report signifies greater than half of all DeFi exploits happen on cross-chain protocols leading to losses of over $2.5 billion.

Cross-chain protocols assist in interoperability between completely different chins permitting customers to ship property from one blockchain to a different. Thus, these cross-chain protocols typically maintain a big quantity of property from a number of chains, making them susceptible to such exploits.

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