Changpeng Zhao Reveals The Cause Of Mixin Network Being A Hacking Victim

Binance founder Changpeng Zhao. (Photo; Doc. Use The Bitcoin)

JAKARTA The boss of Binance Changpeng Zhao, who is a prominent figure in the crypto industry, recently expressed his views on hacking experienced by the decentralized network, Mixin Network.

The figure who is familiarly called CZ stated that this network is a vulnerable security system in its database. So this is used by hackers to exploit the Mixin Network and cause about half of the user's assets to be lost.

Commenting on this, especially in relation to decentralized networks, CZ considered: "Not all who claim they are decentralized are true."

On the other hand, decentralization is a principle in the crypto world that refers to the practice of distributing controls and authorities across networks without relying on one centralized entity.

In decentralized systems, decisions and data management are not controlled by one party, but are spread among many participants or nodes. This is considered to increase security, transparency, and resilience to sensors, because no single entity has full control.

Even so, CZ itself emphasizes that not all projects claiming to be decentralized projects comply with the same standards and principles. This is a warning to the crypto community to be more alert to platforms claiming to be 'decentralized'.

Mixin Network Hacking

News of an attack on the Mixin network emerged when blockchain security firm SlowMist reported the incident on Saturday, September 23, 2023. The hack targeted crypto assets worth more than $200 million (equivalent to IDR 3 trillion), suggesting vulnerabilities in the decentralized platform that were previously deemed safe.

In response to the attack, Mixin Network quickly suspended deposit and withdrawal services. This action aims to avoid greater losses and protect user assets.

It should be noted that this suspension only affects deposit and withdrawal services, so that inter-user transfers are not affected. After the incident, the Mixin Network team began identifying and correcting the vulnerability that allowed the attack to occur.