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- IOTA Founder, David Sonstebo has promised to reimburse the victims of IOTA’s Trinity Wallet hack with the stolen funds out of his own wallet.
- The attack was found to be coordinated with the exploit being a third-party dependency from Moonpay.
- The Foundation is currently carrying out KYC and other legal procedures to identify the affected customers.
IOTA Founder, David Sonstebo has promised to reimburse the victims of IOTA’s Trinity Wallet hack with the stolen funds out of his own wallet. The hack which incurred losses of nearly $2.3 million worth in cryptocurrencies occurred midway last month with funds being stolen out of more than 40 GI accounts.
Initially, the team at IOTA suspected something was wrong with Trinity Wallet and technical diagnostics began. Trinity wallet users were quickly asked to stop interacting with their wallets and avoid any further funding until the cause for the suspicious behavior on the wallet was discovered.
The attack was found to be coordinated with the exploit being a third-party dependency from Moonpay, a payments provider that was integrated with Trinity Pay on IOTA.
The attack had been in the works for a couple of months by then, since the chances of utilizing the exploit were first observed since the IOTA-Moonpay integration in November 2019.
The IOTA Foundation has since been working on ways to fix the damages caused and investigations have been in the works for a while now. The legal investigations have been taking their time so founder, David Sonstebo has taken things into his own hands, assuring all victims that he will personally reimburse victims out of his own wallet and will take maximum effort to make sure the incident will be fully resolved.
Sonstebo says in a Discord message, “To bring assurance to everyone here, I will commit to that all victims identified here shall be made whole again. A significant portion of my own holdings will go towards resolving this unfortunate incident.”
The Foundation is currently carrying out KYC and other legal procedures to identify the affected customers. The team will also continue to work with legal authorities and the team at Moonpay, to try and track down the culprits of the theft. Sonstebo has taken the responsibility to alleviate the concerns of his customers.
He believes that IOTA Foundation is close to building the technology he envisioned and delivering on the goals that they set to achieve, and doesn’t want this incident to put a deep dent in the foundation’s cause. Sonstebo’s act of taking responsibility for the losses faced by his customers is a brilliant example of great leadership qualities.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
