Mixin Network has officially acknowledged a security breach that led to the theft of around $200 million worth of assets.
The incident was first reported by SlowMist, a blockchain security consultancy.
The hack occurred on September 23 when hackers targeted the database of Mixin Network’s cloud service provider.
This breach has raised significant concerns about the network’s reliance on centralized infrastructure, which creates a potential single point of failure.
Mixin Network operates as a layer-2 protocol, offering solutions to make cross-chain transfers more cost-effective and streamlined. However, this incident has brought attention to the vulnerability associated with centralization in such systems.
As of July, Mixin Network reported that the top 100 assets on its platform had a combined value of slightly over $1.1 billion.
During that same month, there were 663,489 unique monthly transactions involving Bitcoin (BTC) and 179,647 Ether (ETH) transactions, highlighting the platform’s usage in facilitating cryptocurrency transfers.