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IOTA: majority of funds recovered after heist

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IOTA majority of funds recovered after heist Crypto Heroes

The majority of the funds stolen in 2018 Iota token heist has been recovered, according to a top member of the Germany-based Iota (IOTA) Foundation.

Iota recovers most of the stolen funds

Reuters reported yesterday, January 30 that a large chunk of the 11.4 million USD lost in Iota token heist last year has been recovered. This is according to Dominik Schiener, Iota co-founder and co-chairman of its board. However, the funds are in possession of law enforcement authorities and will be used as evidence against the alleged perpetrator of the heist.

Europol announced last week that it had arrested the suspected perpetrator of the heist in Oxford, UK after it collaborated with the British and German police authorities. The investigation started in 2018 after some Iota users had reported stolen funds to German authorities. The authorities complied more than 85 victims, with roughly 11.4 million USD worth of IOTA stolen in the process.

Schiener stated that “from what [the Foundation knows], just a small amount of the 10 million euros has not been found. The exchanges have blocked the hacker’s accounts. He tried to free the money, but he did not succeed.”

Schiener noted that they had initially thought the heist was perpetrated by an organized group. However, investigations conducted revealed that it was the work of a single man. The identity of the perpetrator is yet to be disclosed.

The hacker used a malicious Iota seed generator hosted on the iotaseed.io domain to create seeds for users and trick them into using private keys under his control. He was able to secure access to victims’ wallets and transferred their tokens to wallets he created with fake identifications.

In July, authorities in Germany identified the suspect as living in the UK. Following the attack last year, IOTA partnered with Ledger Hardware Wallet to boost its security. The Ledger Nano S hardware wallet now allows users to protect the private keys to their IOTA tokens.


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