IOTA Foundation Suspends Network, Probes Fund Theft in Trinity Wallet

The German nonprofit, which supports several decentralized platforms, said it received several reports of fund theft from its Trinity Wallet users and decided to shut off the Coordinator node in the network for further investigation.

AccessTimeIconFeb 13, 2020 at 11:22 p.m. UTC
Updated Sep 13, 2021 at 12:17 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

IOTA Foundation, the nonprofit behind the IOTA distributed network, recommended users close their Trinity wallets Thursday after multiple reports of fund theft. 

IOTA said it started receiving the reports Wednesday and decided to shut off the Coordinator node in the network for further investigation. 

The foundation is evaluating an exploit on an earlier version of its wallet. It is also trying to analyze the hackers’ attack pattern and complete a manual verification, according to the foundation’s latest statement. 

“First (but not all) exchanges have responded, reporting that no monitored funds have been transferred or liquidated,” the foundation said. 

“Most evidence is pointing towards seed theft, cause still unknown and under investigation,” the foundation said earlier. “Victims (around 10 that identified with the IOTA Foundation so far) all seem to have recently used Trinity.” 

On Twitter, IOTA said it is working with law enforcement and cybersecurity experts to investigate a coordinated attack that resulted in stolen funds.

Dominik Schiener, co-founder of the IOTA Foundation, did not respond to request for comments before the press time. CoinDesk will add updates as the story develops.  

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about