Explained: The Mixin Network Hack (September 2023)

In September 2023, the Mixin Network experienced the largest DeFi hack of 2023 to date. The security breach resulted in losses estimated at $200 million.

Inside the Attack

The Mixin Network hack was a hack of the organization’s cloud service provider. The cloud service provider’s database was compromised, allowing the attacker to access the Mixin Network’s hot wallets.

In total, the attacker was able to drain about $200 million from the decentralized peer-to-peer network. One of the wallets involved in the attack previously had received 5 ETH from the network.

After confirming the incident on X, Mixin Network promised a livestream on 9/25 with a further explanation of the incident. However, links to the livestream were not shared publicly, so it is unclear whether it was canceled.

Lessons Learned from the Attack

The Mixin Network hack was enabled by a breach of the database of the organization’s cloud service provider. Using this information, the attacker was able to steal significant funds from the project’s hot wallets.

This incident underscores the importance of using cold wallets to protect cryptocurrency assets. To learn more about hot vs. cold wallets and their security, check out our blog.

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