IOTA Mainnet Back Online 1 Month After $2M Hack Forced The Coordinator To Be Turned Off

  • IOTA mainnet is back online after the IOTA foundation switched back on the coordinator.
  • They had switched the coordinator off following a hack that saw the hackers exploit a vulnerability in Trinity their desktop wallet.

It has been reported that the IOTA mainnet went back online on Tuesday. This was after they were hacked and had to switch off their coordinator to prevent further hemorrhaging of funds.

The hack that was discovered on Feb 12th and shortly after this the IOTA foundation announced shutting down their coordinator. Critics had been skeptical about the centralized coordinator, questioning the decentralized state of the Mainnet.

Hacker got away with $2.2 million

Cyber experts from the IOTA team are sharing the sentiment that breach was orchestrated via a third party integration Moonpay. The investigations into the hack show that hackers could have possibly planned the elaborate attack from November 2019 as soon as IOTA integrated Moonpay on their Trinity wallet.

The hacker was able to get away with 8.55 million MIOTA which at the time of the hack was equivalent to an excess of $2.2 million.

Migration complete

The IOTA foundation provided a migration tool that would enable users to move their tokens from their old compromised accounts to new secure accounts within a week after which they would switch the coordinator on. Critical account information did not leave Trinity user's devices.

Personally reimburse lost funds

Efforts to trace the architects of the hack are still ongoing without much success. Nonetheless, the foundation has announced its continued unconditional cooperation with the FBI and authorities in Europe to try to uncover what went wrong.

David Sonstebo, the founder of IOTA has come out to state that he will refund the victims of the hack. He would do so by dipping into his personal holdings.

“A significant portion of my own holdings will go towards resolving this unfortunate incident.”

Measures against future attacks

The not for profit foundation announced that they were keen to shake up their entire internal operations with drastic changes in their software security protocols. They also intend to bolster their security capabilities.

Notably, the foundation is still on track with Coordicide project whose main objective is to eliminate the need for a coordinator making the Mainnet fully decentralized.

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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