Crypto Space Struggles to Curb the Rising Crypto Hacks

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Crypto Space Struggles to Curb the Rising Crypto Hacks

People dive into the exciting world of cryptocurrencies, hoping for financial gains, only to discover a darker side—Crypto hacks and scams on the rise. This surge in deceitful schemes has left many investors feeling helpless, while the wrongdoers roam free. 

The reason for this worrying trend? A lack of clear rules and oversight in the cryptocurrency space. This absence of proper regulations has created a haven for illegal activities. 

In this article, we’ll explore the troubling issue of crypto hacks and highlight the urgent need for rules to protect everyday investors and maintain the honesty of this new financial frontier. We will also look into the latest data to understand how this issue is reaching at an alarming rate. 

Mixin Network’s Cloud Service Hit by $200 Million Hack

On September 23, 2023, in the early hours of the morning Hong Kong time, Mixin Network experienced a significant breach. Hackers attacked the database of the network’s cloud service provider, causing substantial asset losses on the mainnet. 

Crypto Hacks
Source: Twitter (X)

Team Announcement 

The team at Mixin Network has announced that they reached out to Google and the blockchain security company, SlowMist Team, to assist in the ongoing investigation. According to initial verification, the compromised funds are estimated to be approximately US$200 million. In the wake of this incident, all deposit and withdrawal services on the Mixin Network have been temporarily halted. 

These services are slated to resume only after comprehensive discussions and consensus among all nodes confirm and rectify the identified vulnerabilities. Notably, transfers remain unaffected during this interim period.

The solution for handling the lost assets is yet to be announced by the Mixin team. To provide insights into this incident, Mixin founder, Feng Xiaodong, will host a public Mandarin livestream at 13:00 HKT on September 25, 2023. 

CZ Binanace Reacted 

The CEO of Binance reacted to the news by saying that he wasn’t familiar with the network because it was hard to understand. He also asked the users to do their due diligence before believing that they actually have a decentralized network. 

Crypto Exchange HTX (Formerly Huobi) Reports $7.9 Million Crypto Hack

Cryptocurrency exchange HTX, formerly known as Huobi, faced a significant security breach resulting in a loss of 5,000 ether, equivalent to $7.9 million. The breach was confirmed by company advisor Justin Sun.

Just Sun Provided Insights

Justin Sun took to the X (previously known as Twitter) to shed light on the situation. Confirming the hack, he reassured users that HTX had covered all losses stemming from the attack. Sun emphasized that the platform has taken prompt action to address and resolve all related issues.

Crypto Hacks
Source: X

Although the loss is substantial, Sun highlighted that the stolen ether represents a minor fraction compared to the massive $3 billion in assets held by HTX users. To provide context, the lost amount is roughly equivalent to two weeks of HTX’s revenue.

Rebranding and Renewed Vision

The security breach coincides with Huobi’s recent rebranding to HTX. The decade-old crypto exchange underwent this transformation with the hope of enhancing user adoption. The rebranding strategy aligns with HTX’s future plans to secure additional licenses across various jurisdictions.

What Needs to Be Done?

In this rapidly evolving technological landscape, education and awareness are paramount. Users must educate themselves about secure practices and choose reputable platforms with strong security measures. Exchanges, on the other hand, must continually invest in cutting-edge security technologies and proactive measures to fortify their defenses against potential crypto hacks.

Ultimately, by working together and fostering a culture of vigilance and responsibility, we can collectively fortify the space, minimizing crypto hacks and ensuring a more secure future for digital assets.

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