As you may remember, back in January 2018, there was a massive hack that targeted the IOTA network. It was reported that roughly $11 million worth of coins were stolen from the users’ accounts. It is believed that most of the victims of the attack were Germans as the majority of stolen fund reports came from there.
Reports have come in from IOTA thanks to their co-founder’s interview recently, that the majority of the funds have been recovered, about $10 million. The culprit has been arrested and there is an ongoing investigation to find the rest of the lost funds.
Dominik Schiener, the co-founder of IOTA disclosed all of the information about the whole ordeal. Saying that the culprit was descovered, because he was trying to “free the money”, meaning he was trying to liquidate some of them in order to actually cash out. However, he was unsuccessful, was quickly discovered and promptly arrested. According to the reports, he is a UK citizen with a “stable job and a nice education”.
The hack happened alongside a DDoS attack on the IOTA server, meaning that it masked pretty much everything and the users didn’t even notice that their funds were gone. It’s important to note that the IOTA platforms use an 81 character-long private key for their wallets. The key difference is that the coins are not stored directly into the wallet, but on the IOTA server itself, called the Tangle. It somehow resembles the system UproFX uses but much less developed.
The IOTA wallets weren’t direct repositories for the tokens, they were basically a gateway to the whole server, where the tokens would eventually end up. The 36 year-old hacker was operating a random password generator website, from which he kept all of the logs. The passwords it was making were quite predictable and he was able to easily just run the program and access people’s accounts without even a serious hassle.
Thankfully however, he has been arrested and is now preparing for extradition to Germany, in order to face his trial.
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.