IOTA - Thousands of Wallets Compromised and Funds Stolen

[windjc]

Wow, thats bad news for IOTA. Even though its not technically their fault that people used second hand websites posing as seed generators.

Wrong, it is exactly their fault. The wallet could and can not create a seed, that is the private key, and they promoted the malicious sites in the official forum which has now gone offline forum.iota.org

There was NO formal promotion of this site by the Iota team. You are lying.

[windjc]

For several weeks I have prevented my friends about the major security flaws that have been detected in Iota, but apparently many think it is offensive to express this way of a project that many have considered "the future of the cryptos". I'm glad that I decided not to invest in this great scam.

It's not a scam, the project is real. They just did not give any attention on security, repeatedly. Happened before, happened now, will happen again.
As for this ignorance they should be questioned openly and make accountable.

They are NOT responsible for 3rd party sites. They have actually done more than ANY coin for security. Hell, they reclaimed 1000s of wallet to protect them. What did ETH do? Oh, yeah rolled back twice.

[windjc]

I generated a seed online b/c it was so long, but I changed a few of the letters and added a few 9's before using it.

I updated to the latest wallet this morning, 2.5.6 and all of my IOTA are there.

Guess this is a good warning for those that read this thread, if you generate a seed using an online random generator, change out of few of the letters and number(s) before using the seed!!!!!!!!!!

Smart. Thats all anyone had to do, even if they used a scam site. Change ONE character. Just ONE.

[thrax]

I would expect the mainstream crypto news sites to cover a $1.5 billion heist, but there's nothing on cointelegraph. Its most recent story mentioning IOTA is a price analysis of Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, and Cardano.

The IOTA price analysis section makes no mention of any heist, and it's ambivalent on whether the price will rise or fall.

https://cointelegraph.com/news/price-analysis-jan-19-bitcoin-ethereum-bitcoin-cash-ripple-iota-litecoin-nem-cardano

If it's not all over the news it's unlikely a significant sum was scammed.

[windjc]

I would expect the mainstream crypto news sites to cover a $1.5 billion heist, but there's nothing on cointelegraph. Its most recent story mentioning IOTA is a price analysis of Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, and Cardano.

The IOTA price analysis section makes no mention of any heist, and it's ambivalent on whether the price will rise or fall.

https://cointelegraph.com/news/price-analysis-jan-19-bitcoin-ethereum-bitcoin-cash-ripple-iota-litecoin-nem-cardano

If it's not all over the news it's unlikely a significant sum was scammed.

Its a fucking lie. The amount stolen is about 5 TI or $15 million worth. The OP obviously has an agenda to create FUD.

On top of this, the majority of these funds are being tracked and will be blacklisted from exchanges. So GOOD LUCK trying to sell them.

[immakingacoin]

Everyone should still pay attention to IOTA, eventually that is where the Bots that do your Job for you are going to live.

[isabella.liri]

Hi guys,
my wallet got hacked too. Such a bad thing

Isabella

[MadMac]

Wow, thats bad news for IOTA. Even though its not technically their fault that people used second hand websites posing as seed generators.

Wrong, it is exactly their fault. The wallet could and can not create a seed, that is the private key, and they promoted the malicious sites in the official forum which has now gone offline forum.iota.org

There was NO formal promotion of this site by the Iota team. You are lying.

Certainly it was promoted in the old IOTA forum, which is now abandoned, or so it seems. "Formal promotion"? I don't know what that means.

DO NOT USE THIS!!!!

https://forum.iota.org/t/secure-iota-seed-generator-comments-welcome/3747
https://forum.iota.org/t/iotaseed-io-now-also-for-generating-paper-wallets/3915

DO NOT USE THIS!!!!

Better do your homework before calling someone a liar!

[mobilazy]

It cannot be 1.5 billion if market cap of IOTA is like 10 bln. So more than 1/10th of people used this online seed generator? That's cannot be true!
I saw some threads where developers were against using it and warn about consequences. They removed this feature to generate a seed because it wasn't truly random. How hilarious it is! Like average user can do a better job and generate a truly random seed! So I'm not 100% on developers side either, it is their fault as well.

[CryptoNews1]

If you bought IOTA, check your wallet. Chances are high that it is empty now.

Don't believe me? Open it and find out yourself that all your funds have been stolen.

How so? People were told to use online seed generators. Yes, a seed, online. Not from the wallet itself, no password, not protection at all. And one clever chap collected all the generated seeds and just cashed in.

What can you do? If it is still "Pending" then check out this posting from the official IOTA forum. If it says confirmed as it does for me, funds are gone.

https://forum.helloiota.com/9100/To-everyone-posting-with-stolen-balances

IOTA tries to blame people now for using the online seed generators. I think the party to blame is IOTA itself, for not putting a seed generator in their light wallet, and for not password protecting it.

This actually calls for class action as thousands of accounts were compromised!

(my x-post from Steemit)

why would you use online generators? That's not secure... much better to make your own seed, not that difficult

[MadMac]

The key issue with IOTA is that there is no authorization at all built into the system. Not 1 Factor, not 2, but none!

You login by using your private key, openly and visible to anyone.

1 factor authorization would be a password.
2 factor authorization would be a PIN or something like that number from Google Authenticator.

None of these, not even a simple password, are available for IOTA. That is a huge design flaw that put everyone at extreme risk. And for this only the developers are to blame.

[oaks05]

15 million or 1.5 billion stuff like that shouldnt happen, iota is such a pain to use, ive always avoided iota and and all i hear about it is complaints from people its always one thing after another.

[Enjorlas]

I saw a message about this on an other forum, it is unacceptable, if dev do nothing about that, they should be removed from all markets and prosecuted

[kololo]

It's terrified  to use a seed generator online. I think use a offline seed generator  in a computer which never online is much more safe than the hard wallet.

If the light wallet does not have a seed generator,  the team really has some responsible to their jobs.

Common users don't have enough knowledge to know that the online seed generator is not safe, they should do all the tech things to avoid people to have that kinds of trouble.

[windjc]

The key issue with IOTA is that there is no authorization at all built into the system. Not 1 Factor, not 2, but none!

You login by using your private key, openly and visible to anyone.

1 factor authorization would be a password.
2 factor authorization would be a PIN or something like that number from Google Authenticator.

None of these, not even a simple password, are available for IOTA. That is a huge design flaw that put everyone at extreme risk. And for this only the developers are to blame.

Quit acting like a lieing entitled prick. You are not entitled to a wallet that has a random seed generator unless you build one yourself. Stop this pathetic Fudding.

[windjc]

Wow, thats bad news for IOTA. Even though its not technically their fault that people used second hand websites posing as seed generators.

Wrong, it is exactly their fault. The wallet could and can not create a seed, that is the private key, and they promoted the malicious sites in the official forum which has now gone offline forum.iota.org

There was NO formal promotion of this site by the Iota team. You are lying.

Certainly it was promoted in the old IOTA forum, which is now abandoned, or so it seems. "Formal promotion"? I don't know what that means.

DO NOT USE THIS!!!!

https://forum.iota.org/t/secure-iota-seed-generator-comments-welcome/3747
https://forum.iota.org/t/iotaseed-io-now-also-for-generating-paper-wallets/3915

DO NOT USE THIS!!!!

Better do your homework before calling someone a liar!

It was promoted by the thief! Lol. OP is just attempting FUD. It’s transparent.

[MadMac]

Quit acting like a lieing entitled prick. You are not entitled to a wallet that has a random seed generator unless you build one yourself. Stop this pathetic Fudding.

What kind of troll are you? LOL

FUD? It's not FUD but FACT that this happened, IOTA fanboy 

[fat buddah]

Iota is the worst coin that i have ever holded. I was just having them on my wallet because it was a promising coin, but then i discovered that the team is full of liars and scammy people, so i sold them all at $1,50 each one of them. This is pure crap.

[Johnnyrig]

im sry.. but who is that stupid to use a Online Seed Generator? how could that happen?

[feelideb]

Many top respected cryptocurrency leaders have expressed serious concern about the security of Iota especially the tech behind it. Tangle. Though the recent theft has nothing to do with iota itself, but I think serious question should be asked about safety of using iota.