In a strategic maneuver within the crypto realm, Mixin Network, the decentralized cross-chain protocol, sent a message to the hacker responsible for the staggering $200 million exploit on September 23. The message comes with an offer: a $20 million bug bounty in exchange for returning the stolen funds.
The message, encrypted with details of the exploit, implores the wrongdoer to consider that a substantial portion of the looted assets belong to users. It states, “Most of our platform assets were users, and we hope you can refund them. You can keep $20M of the assets as a BUG Bounty Reward for the BUG.”
The official confirmation of the exploit arrived conspicuously on September 25. In a candid disclosure, Mixin Network unveiled that the malefactors had adeptly penetrated the defenses of a third-party cloud service provider, thereby precipitating the unfortunate depletion of almost $200 million worth of assets from the platform.
Mixin Founder’s Strengthens Community Trust
Feng Xiaodong, the visionary founder of Mixin, committed to compensating impacted users, offering restitution of up to a cap of 50%. The residual amount will be distributed as bond tokens, with the company strategically earmarking its earnings for their repurchase. This strategic move demonstrates Xiaodong’s dedication to rectifying the situation and fostering trust within the Netwok community.
The finer details surrounding the exploit remain shrouded in mystery. However, an on-chain analytic platform has highlighted the hacker’s prior engagements with Mixin Network. The address linked to the hacker, 0x1795, received 5 Ether (ETH) amounting to $1,588 from Mixin in 2022.
The modus operandi behind the audacious $200 million heist via a data breach continues to baffle experts. Cross-chain protocols, pivotal in decentralized finance (DeFi), have borne the brunt of some of crypto history’s most monumental exploits. Reports indicate that over half of all DeFi exploits have transpired within the domain of cross-chain protocols, culminating in staggering losses of over $2.5 billion.
The cross-chain protocols facilitate seamless interactions between distinct blockchain networks, enabling users to transfer assets. These protocols frequently accumulate substantial assets from various chains, rendering them susceptible to potential exploits.
Related Reading:| Hong Kong’s Crypto Crisis: Mixin Network Temporarily Halts Services