Mixin Network is now offering the attacker a $20 million “bug bounty” reward in a bid to recover the stolen user funds.
In a message posted on-chain, Mixin Network made the offer, saying: “Most of our platform assets were users’, and we hope you can refund them. You can keep $20 million of the assets as a BUG Bounty Reward for the BUG. Contact us via firstname.lastname@example.org for the reward details.”
Mixin Network had to suspend operations following the attack to assess the extent of the damage. Initially, it was believed that nearly half of the users’ assets were compromised.
However, subsequent investigations have revealed the losses were not as significant as initially estimated.
Mixin Network is a decentralized network that allows users to transfer digital assets across different blockchains.
It was launched in 2017 and is powered by decentralized nodes that stake in XIN.
Mixin’s distributed ledger is an open and transparent decentralized ledger that is collectively booked and maintained by several mainnet nodes.
On the network is Mixin Messenger, which is the first open-source Dapp built on it.
Hacks in Web3
The Mixin scenario is part of the latest series of attacks meted out on Web3 protocols in the industry that have resulted in the loss of over $1 billion in 2023.
This step taken by Mixin reveals its commitment to preserving users’ funds. It has also reassured users that once vulnerabilities are confirmed and fixed, services such as deposits and withdrawals will be resumed, and transfers will not be affected during this period.
Conversely, users are warned to avoid carrying out transactions on the protocol to prevent the loss of assets.
Speaking about the incident, Mixin Network founder Feng Xiaodong said that the team could guarantee the security of at least half of the assets for now.
He added that “bond tokens” could also be issued to allow users to claim their compromised funds, with plans for a future buyback.