How hackers executed the largest crypto theft of 2023
What's the story
Hong Kong-based cryptocurrency firm Mixin has announced via social media platform X that hackers have stolen around $200 million from its accounts.
Per the company, the database of its network's cloud service provider was "attacked by hackers, resulting in the loss of some assets" and funds worth approximately $200 million.
Mixin is a network for transferring digital assets and has one million users. This hack is the largest crypto theft so far this year, according to researchers.
Details
Mixin's network built on DAG consensus model
Mixin's network is built on a directed acyclic graph (DAG) consensus model, allowing for faster transactions and lower fees compared to traditional blockchain networks.
According to blockchain research firm Elliptic, the $200 million crypto theft is the largest hack of 2023 and ranks as the tenth largest in history in terms of the volumes of cryptocurrency stolen.
What Next?
Security concerns arise
The massive hack of Mixin's funds raises concerns about the security of digital assets.
This incident follows a series of high-profile crypto thefts in recent years, including the $530 million hack of Japanese exchange Coincheck in 2018.
As per blockchain researchers Chainalysis, last year hackers stole crypto worth as much as $3.8 billion, making 2022 the worst year on record.
Insights
Mixin halts withdrawals, transfers remain unaffected
Mixin has temporarily stopped allowing users to withdraw their funds from the network, but transfers have not been affected.
The crypto firm stated that it will re-open its services once vulnerabilities are fixed.
The incident underscores the need for increased security measures in the crypto industry, and Mixin's response to the hack will be closely watched by industry experts and regulators.