Controversy Surrounds $200M Mixin Network Hack and Compensation Plan
The Hong Kong-based Mixin Network, a decentralizedWith normal currency, banks and governments control everything – they’re the central authority. But cryptocurrencies work differently! Instead of one central group calling all the... More cross-chain transfer protocol, has come under scrutiny following a $200 million hack on September 25. The Mixin Network allowed users to send digital assets to others using just a phone number. The assets were normally kept in ‘cold storage’, but the cloud server hack led to the compromise of Mixin’s hot wallets.
After the hack, Mixin’s founder, Xiaodong Feng, promptly revealed a compensation plan. However, this plan only covers up to 50% of the users’ lost assets. The remaining will be distributed as ‘tokenized liability claims’, which Mixin plans to repurchase with future profits. This response has drawn criticism, with some claiming that the stored Bitcoin should never have been vulnerable to theft.
The incident has raised questions about the security measures in place at the Mixin Network and the adequacy of the proposed compensation.
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