Wednesday, May 29, 2024

Following a severe cybersecurity breach that led to a loss of $200 million from Mixin, a decentralized exchange (dex) platform, the firm disclosed that the weak link was its cloud service provider. To recoup the missing assets, Mixin has announced a $20 million bounty for the hacker should they return the looted funds. Via an onchain communiqué on the Ethereum blockchain, Mixin emphasized that the siphoned assets were owned by the platform’s user base.

Mixin Issues Onchain Entreaty for the Restoration of Assets

A mere 48 hours ago, Mixin Network—also referred to as Mixin Kernel—underwent a substantial security violation, culminating in a financial setback of $200 million. Upon identifying the cloud service provider as the compromised nexus, the Mixin team has engaged in a collaborative effort with Google and the Slowmist blockchain security team to rigorously investigate the event. Strategically, the Mixin crew broadcasted an onchain memorandum to the offender, tendering a financial incentive for the restitution of the absconded assets.

The onchain correspondence states, “The majority of our platform’s assets belong to our users, and we urge you to return them. We will offer you $20 million as a bug bounty reward. For details regarding the reward, please contact us at [email protected],” as appended by the Mixin software engineers.

Notably, Mixin has relayed its plea twice through Ethereum’s onchain messaging infrastructure. This episode is reminiscent of a recent infringement involving Coinex, in which the exchange suffered a loss exceeding $54 million across multiple cryptocurrencies, including BTC, ETH, and TRX. Coinex similarly composed a formal entreaty to the hacker post-incident. Intriguingly, such approaches have yielded positive outcomes for some organizations, as hackers have sporadically returned either a fraction or the complete sum of the purloined assets.

Within the last 48 hours, entrepreneur Justin Sun disclosed that the HTX exchange was compromised, losing 5,000 ETH in the episode. Sun took an unconventional approach by not only tendering a financial reward for the return of the missing assets but also extending an employment opportunity to the hacker as an HTX security advisor. Although there are examples of hackers acceding to such requests, they frequently opt to keep the ill-gotten crypto assets. Significantly, Mixin’s initiative represents the third such bounty proposition within a concise period of three weeks.

We invite you to share your analysis and viewpoints on Mixin’s onchain initiative to entice the hacker into returning the misappropriated assets. Kindly contribute your insights in the comments section below.

Frequently Asked Questions (FAQs) about Mixin Network cyberattack reward

What led to Mixin Network offering a $20 million reward?

Mixin Network suffered a significant cyberattack that resulted in a loss of $200 million from its decentralized exchange platform. The company traced the breach to its cloud service provider and is now offering a $20 million bounty to the hacker upon the return of the stolen assets.

How did Mixin communicate the reward offer to the hacker?

Mixin chose to communicate this reward offer through an onchain message on the Ethereum blockchain. The message was broadcasted twice and emphasized that the stolen assets belong to the platform’s users.

Who else is involved in the investigation of the Mixin Network breach?

Mixin has collaborated with Google and the Slowmist blockchain security team to conduct a thorough investigation into the cybersecurity breach.

Is Mixin the first company to offer such a bounty to hackers?

No, Mixin’s approach is not unique. Coinex, another exchange, also recently issued an appeal to a hacker after suffering a loss of over $54 million in various cryptocurrencies. Some entities have had success with this tactic, with hackers occasionally returning stolen funds.

What other incentives have been offered to hackers besides financial rewards?

In a similar but distinct case, Justin Sun, an entrepreneur, not only offered a financial bounty for the return of stolen assets from the HTX exchange but also extended an employment offer to the hacker to serve as a security consultant.

How common is it for hackers to return stolen assets following such pleas?

While there are instances where hackers have returned either a portion or the entirety of the stolen assets, it is more common for hackers to retain the ill-gotten gains.

How many times has Mixin sent its onchain plea?

Mixin has relayed its plea twice through Ethereum’s onchain messaging system.

Within what timeframe has Mixin made this bounty offer?

Mixin’s bounty offer marks the third such proposition within a span of three weeks, highlighting a growing trend in the industry to recover stolen assets through financial incentives.

More about Mixin Network cyberattack reward

  • Mixin Network Official Announcement
  • Ethereum Blockchain Onchain Messaging
  • Slowmist Blockchain Security Team
  • Google Cloud Security Services
  • Previous Coinex Cyberattack and Bounty Offer
  • HTX Exchange Security Breach and Justin Sun’s Response
  • Industry Trends in Offering Bounties for Stolen Assets

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7 comments

BlockchainBeliever September 27, 2023 - 10:30 pm

Love how blockchain allows for these kinds of open communications, but sadly, I doubt the hacker cares.

Reply
CryptoEnthusiast September 28, 2023 - 5:21 am

mixin going all in. This strategy worked for some, but its a long shot. Good luck to ’em.

Reply
JaneInTech September 28, 2023 - 7:54 am

Two onchain messages and still no response? doesn’t seem promising but who knows.

Reply
JohnDoe101 September 28, 2023 - 10:52 am

Wow, a $20 million reward, that’s insane. Do they really think the hacker’s gonna return the money?

Reply
Skeptic_2023 September 28, 2023 - 12:58 pm

offering a job to hackers now? What’s next, giving them shares in the company. Smh.

Reply
Realist September 28, 2023 - 1:36 pm

3rd bounty offer in 3 weeks. Looks like this is becoming the new norm in the industry.

Reply
FinanceGuru September 28, 2023 - 9:20 pm

Interesting to see big names like Google and Slowmist involved. Hopefully, they’ll tighten the security this time.

Reply

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