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Thursday, March 12, 2020

IOTA Execs Refund Hack Losses

I have in the past talked about IOTA, a unique kind of blockchain system.  This past February it was a subject to a hack and lost some $1.4 Million in cybercurrency.   Now the losses are being refunded.  No details about the vulnerability of the system to hack has been confirmed, except that it was probably random-number seed theft or manipulation.  Still this is very worrisome,  and until this is fully explained and patched, I would recommend caution.

An IOTA executive is personally reimbursing victims of February's Trinity wallet hack in order to "preserve" the project's runway, he told CoinDesk.  

The founder of the distributed ledger network, David Sonstebo, said he would repay people affected by the $2 million hack from his own IOTA holdings. The "main motivation for the decision" had been to "safeguard the IOTA Foundation's runway" over the next 12 months, he added.

The foundation was forced to suspend the IOTA network in February after hackers stole more than $8.5 million in IOTA's native token MIOTA, worth approximately $1.4 million at the time of writing. The network only came fully back online again on Tuesday.

Sonstebo announced he would personally reimburse victims earlier this week, following weeks of internal discussion. "It's just preemptive step in the worst-case scenario of something drastic happening overnight," he said. ... "

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