Mixin Network, designed to improve blockchain scalability, recently fell victim to a security breach, resulting in a nearly $200 million loss. The protocol’s cloud database was attacked, leading to significant asset losses on its mainnet. Mixin Network’s approach, similar to layer 2 protocols, aims to streamline inter-chain transfers, making them both cost-effective and fast. However, this efficiency comes at a cost – its centralized database, which has become a glaring vulnerability, as highlighted by many members of the crypto community.
Mixin founder Feng Xiaodong will address this incident later in the day during a public broadcast in Mandarin.
The Impact: A Closer Look at the Numbers
Recent data reveals that the primary assets circulating within Mixin Network are valued at just over $1.1 billion. The platform has recently witnessed a flurry of activity with over 600,000 unique bitcoin transactions and 180,000 Ethereum transactions.