Hong Kong crypto network Mixin hacked US$200 million

Hong Kong crypto network Mixin hacked US$200 million

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Mixin Network, a Hong Kong-based peer-to-peer transactional network for digital assets, announced Monday on X that the database of its cloud service provider was hacked, resulting in the loss of approximately US$200 million. This is the second major crypto hack in Hong Kong this month despite the region’s efforts to protect digital asset investors.

See related article: Hong Kong crypto exchange CoinEx suffers hack, at least US$43 million lost

Fast facts

  • Mixin will suspend deposit and withdrawal services until the vulnerabilities have been addressed. Transfers will run as usual.
  • Mixin founder Feng Xiaodong said in a live broadcast that the company is currently able to compensate affected users up to a “maximum of 50%,” and the remainder will be paid back in bond tokens which the company will use its profits to buy back, PANews reported.
  • The hack follows the security breach on Hong Kong crypto exchange CoinEx, which lost approximately US$70 million from a cyberattack on Sept. 12. 
  • Blockchain analytics firm Elliptic suspects the hack was led by North Korea-backed Lazarus Group, as a portion of the stolen funds were sent to an address previously used by the group.
  • Hackers stole more than US$3.8 billion in cryptocurrencies last year, according to blockchain forensics firm Chainalysis. North Korea-backed cyber actors hacked US$1.7 billion of that amount.
  • Hong Kong has been implementing a slew of regulatory measures this year amid efforts to be a global hub of crypto trading while preparing guardrails for investors against bad actors. Its new rules, which went into effect on June 1, allowed licensed crypto trading platforms to offer services to retail investors.
  • However, the region’s crypto sector has recently experienced incidents. Aside from the hacks, Dubai-based crypto exchange JPEX was probed by the local police and financial authorities after fraud allegations of around US$154 million in damages to 1,600 investors.  

See related article: North Korean hackers stole US$41 million from gambling site: FBI

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