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IOTA Attacked for Subpar Wallet Security Following $4m Hack

The IOTA project is again the target of public anger and criticism. This time the issue is a feature of the technology that apparently allowed scammers to steal around $4 million from many unsuspecting users.

Also Read: U.S. Rating Agency to Issue Bitcoin and Cryptocurrency Grades Wednesday

Poisonous Seeds

IOTA Attacked for Subpar Wallet Security Following $4m HackIOTA, the network behind the 11th most valuable cryptocurrency in the world by market cap (MIOTA), is coming under an attack on social media and community forums. The technology behind the project is accused of enabling an apparent exit scam or hack which cost users about $4 million, according to reports.

This is not the first time IOTA has come under attack. Back in December the project received a lot of public scorn for allegedly over hyping a “partnership” with Microsoft.

IOTA Attacked for Terrible Wallet Security Following $4m Hack

What Happened?

IOTA Attacked for Terrible Wallet Security Following $4m HackThe IOTA wallet requires users independently generate their own seeds (private keys). Many users have relied on online key generators to do this, such as iotaseed.io.

If someone maliciously hacked into the online generator (or was behind it at the first place) they could just collect all the seeds IOTA users were getting from them and wait for the best time to strike. This apparently happened on Friday night, when a lot of funds started moving using stolen seeds. At the same time, whoever was behind the theft organized Read More Here