IOTA May Resume Operations 2 March After $2M Wallet Hack

IOTA May Resume Operations 2 March After $2M Wallet Hack

IOTA, a Berlin-based non-profit foundation, has announced that it would resume operations by 2 March.  

The foundation halted its operations after some of its highest-value users faced a wallet hack.

Most importantly, IOTA said it will help such users to transfer their tokens to new accounts through new transition tools.

Thus, the organization would resume operations after completing the transfer process.

Dominik Schiener, IOTA co-founder, said IOTA has worked with law enforcement bodies to identify the reason of the loss.  

He added that the hack resulted in a loss of nearly $2 million, noting that some of the funds have been transferred to other platforms.

Schiener said:

“As such, the Foundation is working on a remediation plan to refund victims of the attack, although specific details won’t be available until next week.”

“The biggest fault that we have made was to not integrate the NPM package and properly security auditing the integration. Thus, human error and the pressure to release a new version ASAP ultimately lead to this mistake,” said Schiener.

Accordingly, IOTA has asked all users of the Trinity wallet to transfer their tokens to new accounts.

Schiener said:

“One important thing is obviously that this does not affect all IOTA users, but only affects Trinity users of the Trinity desktop wallet. So everybody else is safe and doesn’t have to worry about this.”

Network suspension raises concerns

However, the decision to suspend the network following the hack was disturbing, considering that IOTA is structured as a decentralized network.

Co-chair David Sønstebø said:

“I know that is controversial in a space where decentralization is all that matters until something like DAO happened and you could roll back the blockchain anyway.”

“Accordingly, pausing the network was an extraordinary measure in response to an extraordinary event and it’s important to get across,” he added.

Earlier, Cryptolydian reported that IOTA has resolved its mainnet issue that was caused by an edge case in transaction structuring. The incident took place on December 29, and was fully resolved the next day.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.