💥Biggest Hack of 2023 - Mixin Network ~ $200 Million

HashingBits | Week- 39

In brief ⚡

• In the early morning of September 23, 2023, the Hong Kong Times announced that Mixin Network's cloud service provider had been the victim of a hacking attack, leading to significant losses on their mainnet.

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Hacks and Scams⚠️

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Mixin Kernel

Amount of Loss:  ~ $200M

Analysis

• On September 23, 2023, Mixin Network, a decentralized cross-chain protocol, experienced a $200 million exploit.

• In response to the hack, Mixin Network sent an encrypted message to the hacker, offering a $20 million bug bounty for the return of the remaining funds and emphasizing that most of the stolen assets belonged to users.

• Mixin Network confirmed the exploit on September 25, attributing it to a breach of a third-party cloud service provider.

• The founder of Mixin, Feng Xiaodong, announced that affected users would be reimbursed up to a maximum of 50%, with the remaining amount to be repaid in bond tokens.

• The exact details of how the exploit occurred were not disclosed, but the hacker's history of interactions with Mixin Network was noted, including receiving 5 Ether (ETH) from Mixin in 2022.

• Cross-chain protocols like Mixin have become targets for exploits in the decentralized finance (DeFi) space, with over $2.5 billion in losses attributed to such incidents, as these protocols hold assets from multiple blockchains and are susceptible to vulnerabilities.

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Explore the Depths of Knowledge: Research Papers, Blogs and Tweets🔖

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Tweets

1. Why OpenZeppelin's ReentrancyGuard avoids resetting a storage variable to zero, and how this maximizes the realized gas refund

2.  This report is one of the best reports I have written so far. Coincidentally it is also the highest paid so far.

3. 👋 I'm working on a project as a solidity developer for a multisig wallet following the ERC-4337 specification.

4. The upcoming Venus contest on @code4rena  will be implementing the Cobb-Douglas production function. Here is a great resource...

5. Bridges can combine multiple structures: ...

GitHub Repos

1. Smart Contract Security Verification Standard

Articles 

1.  I was hunting on a project, and their bug bounty program disappeared. Why? 

2. Uniswap V4 deep-dive

3. The Journey Of A Successful Solo MEV Searcher - Ft. Shunsh0x

4. Ten issues with ERC20s that can ruin you Smart Contract

5. Borrowing on Ethereum: Comparing Architecture Evolution of MakerDAO, Yield, Aave, Compound, & Euler

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Web3 Community Spotlight🔦

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1. https://x.com/Quill_Academy/status/1707021743330935205?s=20

2.  ZkSync Era, an Ethereum zk-rollup, is surging ahead, locking an impressive $650 million in total value since its launch in

https://blog.quillaudits.com/2023/09/29/exploring-zk-stacks-modular-framework-for-building-customizable-zk-powered-hyperchains/ 👇

3. One of the infamous crypto incidents that sent shockwaves through the digital financial major landscape, around $162M Ether, was locked 👇

https://blog.quillaudits.com/2023/09/27/frozen-ether-issue-and-mitigation-technique-explained/

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