Mixin Network founder says just half users' assets are safe after $200 million hack

Mixin Network, a decentralized wallet service that suffered a $200 million hack over the weekend, can initially guarantee the safety of just half of its user assets, its founder said today.

“No matter what your assets are — whether it's Bitcoin BTC -1.79% or Ethereum ETH -1.15% — we will ensure that half of it is unaffected,” Feng Xiaodong, founder of Mixin Network, said today in a livestream. “We’re trying to find a way to recover the compromised money, but that is very difficult.”

Feng added that the company can initially only ensure that half of the total user assets on the network are not affected by the hack. For the rest of the assets, Feng said that the team is considering issuing what he called “bond tokens” for users to claim, with plans for Mixin to buy them back in the future.

Feng also said that the company plans to establish a new system to host user assets.

XIN, Mixin’s token, fell 8.6% over the past 24 hours to $194 at the time of writing following this morning’s announcement of the hack, according to CoinGecko data.

$200 million hack

Mixin said earlier today that it had temporarily suspended deposit and withdrawal services following attacks by hackers involving some $200 million in funds.

Mixin added that blockchain security firm SlowMist has stepped in to assist with an investigation. SlowMist said in a separate post that the Mixin Network cloud service provider database was attacked on Saturday.