Reading Time
~ 2 minutes
Spread the Word
Advertisement

IOTA– an advanced cryptocurrency based on innovative blockchain network was hacked. The platform’s users lost approximatively 4 million US Dollars, calculated in IOTA tokens.

According to Finance Magnates, hackers have managed to reach customers’ deposits through seeds they generated from iotaseed.io.

Basically, it is too hard to generate seeds. It needs time and knowledge. That’s why most of users followed an online website to manage the process quickly. The most dangerous online site is known to be iotaseed.io. At the moment, they blocked their official website and wrote “Taken down. Apologies”.

Ralf Rottmann- member of the IOTA Evangelist Network explained for Medium that, actually, the hackers are not the iotaseed.io holders. He wrote that “From what I’ve heard, many users who lost their funds created their seeds at iotaseed.io. chances are, the folks behind this and potentially other seed generators have sat tight for a while, collecting piles of seeds, though the actual numbers of users affected are not known, the fact, that iotaseed.io is still online at the time of this writing might suggest that the site got compromised itself, and it’s not the folks behind the service who ran the attack”.

The IOTA platform itself isn’t accused for this incident. They were warning users constantly to be cautious about generating seeds via online. This seems to be the most disturbing thing to users – the fact that the IOTA team cannot return their lost money.

Ralf Rottmann also added that “The attackers knew the seeds. You invited them into your wallet, by handing them your keys on a silver platter. And once again: do not use online seed generators. Generating an IOTA seed in a secure, completely offline fashion is the best protection you can get”.

What do you think about this incident? Will the IOTA developers do something to reconcile the users?

Advertisement
Read more articles related to this subject:
Notice: The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.