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

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.  


Read more about

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.