In a surprising turn of events, the Mixin Network, a decentralized cross-chain protocol, has offered a $20 million bug bounty to the hacker responsible for a recent $200 million exploit. The exploit occurred on September 23, and the majority of the stolen funds belonged to users of the platform.
The Mixin Network communicated this offer through an encrypted message sent along with the exploiter transaction. The message requested the return of the stolen funds and allowed the hacker to keep $20 million as a bug bounty reward.
Mixin Network Mirrors HTX’s Strategy
This unusual approach has sent shockwaves through the blockchain community, highlighting potential vulnerabilities in this rapidly growing technology. The breach was reportedly due to an attack on Mixin Network’s third-party cloud service provider database.
This led to significant losses on its mainnet, prompting Mixin Network to seek assistance from Google and SlowMist for an ongoing investigation. However, recent updates from Mixin suggest that the losses might not be as severe as initially estimated.
After a period of careful evaluation and reconciliation of assets, Mixin Network has reported that the circumstances are more favorable than initially anticipated. Feng Xiaodong, the founder of Mixin, has assured that a minimum of 50% of the assets remain secure.
The company remains steadfast in its commitment to protect the wealth of its users, particularly in Bitcoin and Ether. As a strategy to mitigate the losses, Mixin is considering the introduction of bond tokens. These tokens would allow users to claim a portion of the remaining assets, with the possibility of a future buyback.
Following the recent security breach, Mixin’s native token, XIN, has experienced a significant drop in value. The token’s price has decreased by approximately 25%, and it is presently valued at $163.37, as per the latest data from CoinGecko.
This incident underscores the importance of robust security measures in blockchain technology. It also highlights how companies like Mixin Network are navigating these challenges, focusing on user asset security and organizational resilience.
