IOTA Resumes Operations after Massive Wallet Hack

IOTA Resumes Operations after Massive Wallet Hack

IOTA, a Berlin-based non-profit foundation, has re-launched its network on Tuesday after suspending it for almost one month on a massive wallet hack.

On 12 February, the foundation suffered a hack on its Trinity Wallet software. IOTA has stopped its network on the same day to deter further security issues. However, hackers managed to steal 8.55 million MIOTA worth nearly $2 million from around 50 users.

It is worth noting that the Trinity Wallet software was vulnerable as hackers managed to access its private keys. However, the hack was attributed to MoonPay which allows its users to purchase Iota directly.

Within a week, the foundation urged users to use the migration tool to transfer their codes into secure accounts.

Plans to prevent possible attacks

IOTA also developed plans to prevent any possible attacks:

“IOTA is overhauling its internal processes, with upcoming changes to software security practices, improvements to our security capabilities and resources.”

Founder reimburses victims

Earlier, IOTA founder David Sønstebø said he will reimburse the victims with 8.52 million MIOTA worth nearly $1.97 million.

Sønstebø Commented on the attack, saying:

“The hack itself was on MoonPay’s infrastructure, but due to the way it was integrated into the Iota wallet, there was a vulnerability that was exploited by the hacker. The total amount of iotas siphoned out of accounts were 8.52 Ti.”

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

Thus, 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.”

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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.