On February 12, IOTA (MIOTA) suffered an attack on its official office portfolio. The IOTA network disconnected the same day and has not been operational since.
On March 6, IOTA founder David Sønstebø announced that he personally wished to pay the 46 victims of the hack last month compensation of 8.52 million MIOTA, which currently equates to approximately 1.97 million of dollars.
Cointelegraph spoke directly to David, who confirmed that he would compensate all the affected users in his pocket and that the IOTA Foundation would restart the network on March 10 as planned.
He also talked about the lessons he learned from hacking attacks, the success of the OTA team so far in catching an IOTA thief, and gave advice to aspiring crypto developers.
Co-telegraph: We hear in various articles that you are considering compensating the victims of the recent IOTA hack from your own resources. Could you confirm that these statements are correct?
David Sønstebø: The statements on IOTA Discord are indeed true.
CT: Can you give a brief overview of the hack and the events that led to it? eg. How many IOTAs were stolen in total?
DS: The hack itself took place on the infrastructure of MoonPay, but due to the way MoonPay was integrated into the IOTA wallet, there was a vulnerability that the hacker exploited. The total amount of IOTA tokens extracted from the accounts was 8.52 Ti.
CT: How many IOTA users are affected by hacking? Do we know how many wallets have been stolen?
DS: 46 people were directly affected by the attacker. Thanks to the rapid action of the IOTA Foundation (notably by turning off the coordinator), we were able to prevent the attacker from stealing more people. Two of the users had multiple seeds, so there were around 50 individual wallets.
How To Profit $1,000+ Per Day
Trading Penny CryptocurrenciesGet Instant Access
CT: What prompted you to compensate users with your own resources? Have other options been considered? How much will it cost you?
DS: It’s simple: I did not start with the goal of enriching myself or my co-founders. This is why we are the only project where there is no pre-extraction or special allocation of tokens of any kind; IOTA is really down to earth. Our goal is to build the world’s first truly decentralized, scalable, and cost-free DLT to promote a secure autonomous future and unlicensed innovation in a variety of industries. We are closer than ever to the goal we set ourselves a few years ago. So I decided to use my personal assets (to which I have not touched for 2 years) to secure the career of the IOTA Foundation. In this way, we can continue to pursue this ambitious goal relentlessly. I want to emphasize that no one in the organization is to blame and that I have never been so proud of the team we have assembled as now. It will cost about $ 2 million. It’s certainly a lot of money, but if my main motive was money, I have had many opportunities to maximize my profits in the past two years. I did not do it. For me, the main objective is to build this future on the basis of our vision. Hopefully one day the culprit will be brought to justice and the money will be recovered. The chances are slim, but we have already done so.
CT: In your opinion, what lessons have you learned from this experience?
DS: It was an urgent warning not to endanger security in any way. This MoonPay vulnerability arose because the IOTA Foundation tried to do something on all fronts, notably by building one of the best portfolios on the market. In retrospect, we should have been much more careful and rigorous, and we should simply have been more patient. I can assure you that this failure will not happen again and that the FI has already signed additional contracts with third party accounting firms and other security specialists [für die IOTA-Stiftung] together.
CT: Do you have any advice for small developers for security?
DS: “Only paranoids survive” is a good phrase to keep in mind when developing software. Furthermore, my advice would be to never give up; everyone fucks something once in a while, it’s just how you react to the situation and what lessons you bring with you if you keep going.
CT: What can we expect from IOTA in the coming months?
DS: The IOTA project and the IOTA Foundation are prospering and progressing faster than ever on all fronts. Important updates to the protocol, known as Chrysalis, will be available soon. We are also working with a number of organizations to streamline the IOTA mass adoption project. In fact, we launched Tangle EE on the day of the attack, which was somewhat overshadowed by this unfortunate incident. Anyone interested in DLT should take a look.
CT: Will IOTA restart March 10 as planned?
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe