IOTA Foundation pauses network, Tokens between $300K & $1.2M Stolen

IOTA foundation said it in a press release on 13th February 2020 that funds have been stolen from the users of Trinity Wallet Software.

The company decided to turn off the coordinator node on Wednesday until they find out the root cause of the theft. This coordinator node is controlled by the foundation itself, which normally keeps a check on the completeness and validation of the individual transactions linked together on the IOTA network.

As per the IOTA Foundation’s current status, the victims seemed to have used Trinity recently. Trinity is a mobile desktop application allowing the user to transfer data and IOTA tokens. With Trinity, one can encrypt and store more than one seeds, with each of them having their own accounts, transaction histories, and settings.

To look over the issue, the foundation has engaged suitable law administration agencies to investigate, and the reports regarding the same will be released once after the investigation is wrapped up.

As per Dominik Schiener, the firm is currently looking into the matter with a team of security investigators to get an idea about how the entire theft occurred. It is not just related to IOTA itself but also to Trinity wallet.

He further explained,

Most likely we are looking at a malicious dependency or even more sophisticated attack related to a third-party integration. We are already in touch with law enforcement and are getting the complete picture of the extent of the attack, but we are most likely looking at around $300k – $1.2m in losses.

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