back to article Mixin suspends deposits and withdrawals after $200m cryptocurrency heist

Mixin Network confirmd on Monday that it has "temporarily suspended" all deposit and withdrawal services after hackers broke into a database and stole about $200 million in funds from the Hong-Kong based cryptocurrency firm.  In a statement posted on the social media platform formerly known as Twitter, the digital biz said the …

  1. teknopaul

    Insider again?

    How come we don't here about such heists in non crypto banking

    1. Persona Silver badge

      Re: Insider again?

      The US has $11 trillion of reserves in gold bullion so about 8,000 tonnes of gold. Roughly 5,600 tonnes of this are in the NY Fereral Reserve building but unlike the plot in Die Hard 3 its physically quite hard to steal as you would need 280 20 ton trucks..

      1. cdegroot

        Re: Insider again?

        Which is why the plot of Goldfinger was a much more “practical” attempt ;)

        1. Wemb

          Re: Insider again?

          Have always wondered about that - surely several billions dollars worth of radioactive gold is now a) much rarer and b) even harder to steal. Presumably would be an even sounder basis for a currency because it sure as hell would dissuade people from trying to convert their cash back into (mostly) gold.

    2. Throatwarbler Mangrove Silver badge
      Holmes

      Re: Insider again?

      As much as people like to malign traditional banks, the usual threats to them are not simple theft. Electronic banking generally practices defense in depth, and, while there have certainly been some woeful security lapses, there are usually multiple safeguards to prevent exfiltration of funds by simple money transfer. There seems to be a large segment of cryptobros who resolutely refuse to recognize the centuries, if not millennia, of lessons accumulated in traditional banking.

      What luck, I get to use the quote by Stockton Rush, the late CEO of OceanGate:

      "You know, at some point, safety just is pure waste . . . . I think I can do this just as safely by breaking the rules."

      1. Claptrap314 Silver badge

        Re: Insider again?

        You mean like ATM's not locking the account before disbursing funds? It took a multi-million dollar heist to get the bank's attention on that one a couple of years ago.

        Or the SWIFT system itself being hacked?

        Look, I was a vocal crypto-skeptic long before someone pointed out that the CAP theorem puts a hard limit on what you can do with crypto, but don't pretend that the security at banks is actually that good.

        The problem is that the cryptobros are smoking their own fumes, and as a result, you get quotes like the above.

        But as the crypto business thins out, we're going to see a major uptick in banks getting popped, because in practice, they aren't that much better, and they systems that they are relying on are more than complex enough to be effectively unsecurable.

    3. Anonymous Coward
      Anonymous Coward

      Re: Insider again?

      Here, hear!

      </snark>

    4. Anonymous Coward
      Anonymous Coward

      Re: Insider again?

      Having worked in those environments, the audit provisions mean it's all very much simpler (though not simple) to trace in conventional bank account land.

      The relative obscurity of the blockchain acts in the crim's favour, though depending on the choice of crypto format traceability is not beyond wit of man. No doubt for such a theft the perps will attempt to cycle the proceeds through a bunch of smaller transactions and obfuscations to try and hide the (eventual) points of sale.

      Fiat currency, backed by government policies and the law; versus Crypto backed by vagaries. (And, this is why actual assets have an edge over the intangible).

      You can find faults with both systems. You pays your money, you takes your choice!

    5. jmch Silver badge

      Re: Insider again?

      "How come we don't here about such heists in non crypto banking"

      Non-crypto banking has plenty of decades in which to close attack vectors and build up an industry best-practice. And there have been plenty of insider jobs against non-crypto banking in decades past...

      Almost all of these involve an insider, whether they were 'in on it' or coerced into participating:

      https://www.thrillist.com/culture/most-successful-bank-robberies-of-all-time-biggest-heists-in-history

  2. JessicaRabbit
    Facepalm

    When will people learn?

    1. Youngone

      with quotes from the article like: "...the damage focuses on the erosion of trust, which can take years to rebuild." I'm not sure they ever will.

      1. Blazde Silver badge

        "the Mixin team will announce the solution afterward"

        Guys, stop being so pessimistic! They have a solution. Wait for the solution

        1. Tom 7

          A solution to what?

          1. Version 1.0 Silver badge
            Joke

            The "solution" update

            "Five green bottles sitting on the floor, I wish to Feng Xiaodong, I wish to Feng Xiaodong that I had 15 million more, and it's lend me two hundred million dollars, I'll buy you a drink, and Google wake me early in the morning." - The hackers from county Hell.

      2. Filippo Silver badge

        >with quotes from the article like: "...the damage focuses on the erosion of trust, which can take years to rebuild." I'm not sure they ever will.

        The quote can also be read as "this moment of realization is fleeting, because the lesson will soon be forgotten".

    2. Geoff Campbell Silver badge
      Holmes

      When will people learn?

      Pretty much the only lesson we can learn from history is that people never learn anything from history.

      GJC

      1. Anonymous Coward
        Anonymous Coward

        Re: When will people learn?

        >Pretty much the only lesson we can learn from history is that people never learn anything from history.

        Usually while those who learn things from history are yelling at them to stop but are just being ignored...

  3. BrBill

    I'm not usually a hedonist when it comes to schadenfreude, but when it comes to crypto I make an exception. What great joy I keep getting out of saying to the world, I told you so. You're buying nothing backed by nothing. Sure, our national monetary systems are also nothing -- but they're backed by at least intent and a promise. Something is infinitely bigger than nothing.

    1. Sorry that handle is already taken. Silver badge
      Devil

      We're 15 years in now; there are no innocents left in crypto. Anyone who still gambles their money on it deserves everything they get. The schadenfreude is absolutely pure and clean now.

    2. Benegesserict Cumbersomberbatch Silver badge

      They're backed by at least intent and a promise, and the stability of the national government who holds the intent and makes the promise.

      The stability of the USD rests on the stability of the US government - which isn't as reassuring as it was 10 years ago.

      1. FuzzyTheBear
        Pint

        And on it's gold reserves ,, cause for government stability ,, they got the whole dang circus in Congress

        Stable government in the USA >? hmm .. at this exact point in time ? fugget about it.

    3. zuckzuckgo

      Dude, where's my wallet?

      One upside is that the crypto exchanges act like a honey pot attracting criminal resources away from my money. Mind you I guess that only really works so long as the criminals eventually get caught or the opportunity to steal crypto remains attractive. Go crypto!.

  4. Ian Johnston Silver badge

    Heist n. (cryptocurrency) Removal of assets by outsiders before the custodians of these assets can steal them.

    1. MrReynolds2U
      Pint

      Make it so

      I feel like that should be the definition in the Urban Dictionary.

      There's a pint waiting for you on Friday from me.

      1. Scotthva5
        Pint

        Re: Make it so

        Why wait 'til Friday? Pints all around!

  5. Doctor Syntax Silver badge

    Oh dear. This has never happened to any other crypto exchange. We're really unlucky.

    Try the other one. It's got bells on.

    1. David 132 Silver badge
      Happy

      It's happened so rarely, in fact, that there's a site dedicated to chronicling such things: Web3IsGoingGreat.com. Well worth a read but only for a few minutes; the human body can only take so much raw schadendreude at a time!

      1. Anonymous Coward
        Anonymous Coward

        Really .... ???!!!

        "Well worth a read but only for a few minutes; the human body can only take so much raw schadenfreude at a time!!"

        Challenge accepted !!!

        (I find that it is such a boost to the endorphins first thing in the morning !!! )

        :)

        1. David 132 Silver badge
          Pint

          Re: Really .... ???!!!

          I just noticed that I mistyped "schadenfreude" in my earlier comment, and yet you were far too nice to say anything about it.

          Still, the temptation to gloat at my misfortune must have been huge. There must be a word for that, I'm sure :P

  6. MrReynolds2U

    "We will try our best to minimize the losses and deeply apologize for this,"

    Roughly translated: "Our customers will take a loss. Us, not so much."

    1. zuckzuckgo
      Pirate

      Company bonuses all round I'm sure.

  7. Nathar Leichoz

    All crypto heists blame North Korean hackers so at this point maybe North Koreans could form their own security company and sell security services and it would sell like hotcakes.

  8. Anonymous Coward
    Anonymous Coward

    Like the monster in your closet

    It disappears the instant Mum turns on the light.

    1. Jedit Silver badge
      Trollface

      Re: Like the monster in your closet

      Are you speaking in support of crypto, then? It's not like a bro's mother ever comes into his basement.

    2. Snowy Silver badge
      Joke

      Re: Like the monster in your closet

      Unless Mum is the monster and the thing in the closet is your protector!

  9. Randy Hudson

    Not formerly

    The website’s domain is Twitter, right now. What’s with the formerlly qualifier?

  10. Claptrap314 Silver badge
    Thumb Up

    Finally!

    "the social media platform formerly known as Twitter"

    That is what it should be from now on. Please tell me that this had entered El'reg's book of style.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like