IOTA - Thousands of Wallets Compromised and Funds Stolen

[MadMac]

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.

[jakecoins]

Wow that's bad!
I'm glad I kept it at the exchange. I just sold it and I am curous how that will effect the price.

[immakingacoin]

IOTA is not fake, it is real. People call the Bitshares/Steemit guys scammers too, because of random things, like Steemit was 15% Premined, and even then it was released on Bitcointalk, and not to Social Media first.

And they made a ton of money on it, but they are not scammers, everything they say Steemit and Bitshares are they are.

And there have been hacks on Steemit, at least one right after the main launch, but Steemit continues to operate as it should. IOTA is actually doing what they say they are doing, but in situations like this, no one should say "Well you should have made up your own password and kept it in a notepad folder".

Gold does not work that way. Cryptocurrency investment should be as simple as Precious Metals, no matter what the mission of the Coin is, or what APIs are plugged into the Blockchain.

[immakingacoin]

Or the Tangle, not Blockchain. Everyone should recognize that Tangle, the Technology behind it, could allow a Company like Bazillion Beings to do what they want to do. In fact, the two groups should get together.

But investing should be investing, not a computer lesson.

[The Scorpion]

Iota has a lot of issues at the moment, i can not understand why a lot of people are still using it knowing that it has a lot of solidity and security measures.

Just avoid it, there are better coins instead of this shit.

[MadMac]

Why you write about Steemit now? It is not related at all. Weird.

[MadMac]

Iota has a lot of issues at the moment, i can not understand why a lot of people are still using it knowing that it has a lot of solidity and security measures.

Just avoid it, there are better coins instead of this shit.

Well, I bought my IOTA in October, it was a good thing as I thought, safe in my wallet.

And nothing of that it was. Luckily I bought cheap, so the book loss is low, still it pisses me off.

[elitemom]

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

[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

[poGium]

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!

I am or rather was very interested in IOTA. I even wanted to use the seed generator, but I did not feel right that it was not provided by IOTA. I even tried it and tried to change a few characters myself. Unfortunately it did not work. Luckily I did not buy any coins. This will definitely be very negative for IOTA. I would also be very angry that IOTA blames the community. I just do not understand why IOTA did not provide a seed generator by itself and hope IOTA will soon provide a seed generator. Thanks for the news!    


If that is true with the $1.5 Billion, then it will definitely have a gross impact on the price of IOTA!

[Hiromono]

Wow that is quite a heist! I’m almost glad I didn’t invest in IOTA when it was new. Never did like the Coordinator centralized aspect of it and now more security flaws popping up.

[immakingacoin]

Why you write about Steemit now? It is not related at all. Weird.

To point out that sometimes coins look like Scams, but when you can actually talk to the people behind it and go read about everything they are doing and see it happening, you can see it's not a scam as long as you know that things are happening that they say they are doing.

Bitshares and Steemit are very controversial, and great examples. And they got hacked also.

[immakingacoin]

And for an example the other way, I would point to MXCnow.

An exchange that had a great idea, and added a stock token on their Exchange, which allowed people to collect fees rather than the owner of the Site, and he would take their Bitcoins and keep the site up and retire pretty much.

But instead, he took their Bitcoins in exchange for the fee stocks, then shut down the website, and disappeared with $3,000,000 and no one knew his name.

And I am saying that this is part of something larger. IOTA may not be to blame completely, but they are to blame for not making Investment Secure.

All of this needs to start being linked to something more than Websites, and APIs, this is all fictional. Even stocks, you don't just invest in Stocks, you eventually go buy some software you can use to do things, and maybe you buy a House, or a Farm to operate. These currencies don't need to be these imaginary things, that can be taken in the blink of an eye like this.

And the Internet of Things Coin being hacked is the PERFECT example of this.

There are all these blockchains that say "You can put fish on them" and "You can put diamonds on them", but the people behind the coin are just programmers. Where is the Coin started by the International Jewlers that you can mine and trade and buy their Diamonds with?

Sure IOTA and HyperLedger are good things, but the people behind them are just programmers.

[alinakorsh]

People, you certainly excuse me, but maybe you are to blame for the fact that they kept their IOTA not on the official purse. The most reliable way to store IOTA at the moment is a desktop version of the wallet. In the Internet about this very much written.

[windjc]

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 are you spreading FUD? 1000s of wallets were NOT compromised. Billions were NOT stolen.

People that were stupid enough to use a 3rd party seed generator at iotaseed.io practically gave these site owners permission to access their wallets. Many people were helped by the community to offset the theft successfully. Others we could not help in time.

Meanwhile a profile of the thief if already being developed as he left a trail.

So stop with your sensationalized untruths please.

[Dydot]

This is serious.

[windjc]

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!

I am or rather was very interested in IOTA. I even wanted to use the seed generator, but I did not feel right that it was not provided by IOTA. I even tried it and tried to change a few characters myself. Unfortunately it did not work. Luckily I did not buy any coins. This will definitely be very negative for IOTA. I would also be very angry that IOTA blames the community. I just do not understand why IOTA did not provide a seed generator by itself and hope IOTA will soon provide a seed generator. Thanks for the news!    


If that is true with the $1.5 Billion, then it will definitely have a gross impact on the price of IOTA!

Its not true. Its a ridiculous lie.

[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

You obviously have an agenda.

[Crytptohack]

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!!!!!!!!!!

[windjc]

Someone posted a number of 1.5 billion US$ stolen. That would top the Mt.Gox Heist which would be today about the same in value. Where does that number come from?

Really?? "Someone" posted FUD and so that makes it true and you start a thread about it? Agenda.