Hong Kong has been the center of attention for the past few weeks due to the crypto crisis, so this series has another unfortunate event. Mixin Network, a Hong Kong-based decentralized wallet service, has temporarily suspended deposit and withdrawal services due to a recent cyberattack that resulted in the loss of approximately $200 million worth of assets.
The attack took place during the early hours of September 23, 2023, Hong Kong time. Hackers specifically targeted the database of Mixin Network’s cloud service provider.
The company, Mixin Network, has announced via Twitter that they are currently investigating the breach. They have also reached out for assistance from Google and SlowMist_Team, a blockchain security firm.
While deposit and withdrawal services are temporarily halted, transfers remain unaffected. The company has indicated that once vulnerabilities are confirmed and resolved, they will restore the services.
Mixin Network’s founder, Feng Xiaodong, will hold a public Mandarin livestream on September 25, 2023, at 13:00 HKT to address the incident and provide further details. The company has promised to announce a solution regarding the lost assets in due course and expressed deep apologies for the incident, thanking their supporters for their continuous backing.
Hong Kong SFC Takes Action Against Suspected Cryptocurrency Fraud
Meanwhile, in response to the JPEX incident, which could potentially be the largest fraud case in Hong Kong’s history, the Hong Kong Securities and Futures Commission (SFC) held a press conference today.
They announced the creation of a special blacklist targeting suspicious cryptocurrency trading platforms. They pledged to collaborate with law enforcement to take legal action against platforms suspected of violating the law.
The virtual asset trading platform under scrutiny is suspected of fraud, with reports from 2,305 individuals involving around 1.43 billion yuan as of September 23, 2023. Hong Kong Legco member Johnny Ng supported the SFC’s efforts and emphasized the importance of timely information dissemination and investor education regarding virtual asset trading platforms.
The China Securities Regulatory Commission also held a press conference, unveiling a series of measures to strengthen information dissemination and investor education in the virtual asset space.
These measures include publishing lists of virtual asset trading platforms, optimizing a special list of suspicious platforms, and conducting awareness campaigns for fraud prevention.
Ng expressed his support for these measures. Additionally, he proposed the establishment of a “Web3 and Virtual Asset Development Subcommittee” to enhance regulations and facilitate discussions on optimization measures.
He aims to oversee the responsible development of Hong Kong’s virtual asset industry. His goals include safeguarding investors and reinforcing Hong Kong’s stature as a global financial hub in the virtual asset sector.
However, the crypto industry’s future in Hong Kong remains a topic of keen interest as both Mixin Network and regulatory authorities respond to these challenges.
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