IOTA - Thousands of Wallets Compromised and Funds Stolen

[xayan123]

This is crazy! IOTA should be more concerned and careful about their users security. It should be their top priority.

[runz]

This is crazy! IOTA should be more concerned and careful about their users security. It should be their top priority.

What could IOTA do if the users give their login credentials to third parties?

[lietus]

This is crazy! IOTA should be more concerned and careful about their users security. It should be their top priority.

What could IOTA do if the users give their login credentials to third parties?

The breach was not about users giving their login credentials away.
The problem was not having an official solution to generate seeds, forcing users to look forward to third parties solutions. Random seed generation with command line (linux or macOS) was not an option for the most part of users. Offline seed generators (javascript wise) were widely accepted as tolerable practice. Now that sh*t is done, all sorts of genius come here to criticize layman investors and pose as daddy knows it all.

[MadMac]

This thread gives a lot of false information that OP is spreading.

You can stop trolling now, fanboy.

What exactly is incorrect in the original posting?

[runz]

This thread gives a lot of false information that OP is spreading.

You can stop trolling now, fanboy.

What exactly is incorrect in the original posting?

Your initial post is like all people have lost their coins. That is not true, hence false information

You are not safe, even if you did not use any seed generator. I explained that already. There are 2 things, authentication and authorization. Right now you can only use a seed which is your private key, to login to your wallet, authentication. There is no way to protect this seed. That would be authorization, or put it simply, a password. IOTA does not have that simple but necessary functionality.

This is not true. You are only in danger if you used online seed generators.

While that is true in general, it is not for IOTA as the private key aka seed was compromised in thousands of cases. Perhaps 90% of all wallets used these online seed generators.

This is also false information. There were 4 million Dollars stolen. This is not 90% of the wallets.  Check line 527 at the link you were posting https://docs.google.com/spreadsheets/d/1IOpYdi8x9R0ivpC2Fl75N9iVDXo82py0yybC9nsxV-I/edit#gid=0

If one would have kept IOTA on the exchange, no seeds would have been created and the funds would still sit there.

This is not ture as well. You should do some research before you claim such things

Always if someone says anything against your claims you call him a fanboy which also might not be true. And last but not least, you can stop posting with all your newly generated double accounts.

[runz]

This is crazy! IOTA should be more concerned and careful about their users security. It should be their top priority.

What could IOTA do if the users give their login credentials to third parties?

The breach was not about users giving their login credentials away.
The problem was not having an official solution to generate seeds, forcing users to look forward to third parties solutions. Random seed generation with command line (linux or macOS) was not an option for the most part of users. Offline seed generators (javascript wise) were widely accepted as tolerable practice. Now that sh*t is done, all sorts of genius come here to criticize layman investors and pose as daddy knows it all.

If you use online banking, is the bank generating the password for you? Do you use online generators for that as well?

But you are right. This would not have happened if the wallet would generate the seed for its users. The wallet is not foolproof yet.

[neuraminidase7]

how do they steal those funds i can't understand. i am sorry for who lost iotas.

[ondabeat]

I think this is another heist that is refined because someone does not do his job the right way to turn some people into more appreciation. I can not imagine how much money has been spent and no one is responsible for it.

[MadMac]

@runz fanboy

Read it again, and take of your pink sunglasses. And stop smoking, needless to say 

[Bitcoininspace]

It seems to me that if wallets were hacked and the abduction of IOTA was a true then it would be already written in some crypto mass media. Where does this information come from?

[MadMac]

It seems to me that if wallets were hacked and the abduction of IOTA was a true then it would be already written in some crypto mass media. Where does this information come from?

If you can not read you should not invest in any online thing, rather pursue education.

[Pennyblocks]

IOTA really looks like a classical whitepaper scam.
I don't know but what is their schedule to solve all this problems about binary and trinary system communication?

[MadMac]

IOTA really looks like a classical whitepaper scam.
I don't know but what is their schedule to solve all this problems about binary and trinary system communication?

They do not do anything to solve any of the problems. On the contrary they deleted evidence and removed the compromised accounts that had the balance stolen from the blockchain which they call tangle shortly after it happened.

Can only repeat it, stay away from this coin. There were so many incidents in the past, it's highly insecure and you better play poker than putting money into this black hole.

[JuniAiko]

Also check for online phishing.. and make sure the URL is correct before trusting any website.
My IOTA is still there, and I used the online generator.
However not many people are aware of this and got tricked if they use a search engine to look for the website and got lead to a fake-site that is designed to look the same and the URL is similar to the real one except for one very minor difference in one of the characters (perhaps a small dot in one of the letters that is hard to notice unless you check it carefully through and don't rush).

IOTA and many of the cryptos should be seen as still in the beta stage development and we shouldn't expect everything to be perfect.
But hopefully IOTA will upgrade their wallet to include the seed generator, as this is a nagging issue.

[JuniAiko]

It seems to me that if wallets were hacked and the abduction of IOTA was a true then it would be already written in some crypto mass media. Where does this information come from?

The wallet wasn't hacked. But because the seeds were generated online at the time rather than being integrated into the wallet itself (note: still in BETA stage development), many people who were not careful got tricked into a phishing site by a scammer that can get hold of those same seeds generated, and later to be used to access those wallets.

[generalizethis]

IOTA really looks like a classical whitepaper scam.
I don't know but what is their schedule to solve all this problems about binary and trinary system communication?

They do not do anything to solve any of the problems. On the contrary they deleted evidence and removed the compromised accounts that had the balance stolen from the blockchain which they call tangle shortly after it happened.

Can only repeat it, stay away from this coin. There were so many incidents in the past, it's highly insecure and you better play poker than putting money into this black hole.

Network and wallet are completely secure--just don't use online seed generators and you're fine. Not complicated.

[nndep3m]

This sort of thing is par for the course for IOTA. Just look at their blog post history, nothing new here. As long as they don't have a seed generator in their wallet, people will of course use online seed generators. What other choices do mainstream investors have? It's hilarious they still haven't added a seed generator to their software even after all this, but unsurprising.

[runz]

This thread gives a lot of false information that OP is spreading.

You can stop trolling now, fanboy.

What exactly is incorrect in the original posting?

Your initial post is like all people have lost their coins. That is not true, hence false information

You are not safe, even if you did not use any seed generator. I explained that already. There are 2 things, authentication and authorization. Right now you can only use a seed which is your private key, to login to your wallet, authentication. There is no way to protect this seed. That would be authorization, or put it simply, a password. IOTA does not have that simple but necessary functionality.

This is not true. You are only in danger if you used online seed generators.

While that is true in general, it is not for IOTA as the private key aka seed was compromised in thousands of cases. Perhaps 90% of all wallets used these online seed generators.

This is also false information. There were 4 million Dollars stolen. This is not 90% of the wallets.  Check line 527 at the link you were posting https://docs.google.com/spreadsheets/d/1IOpYdi8x9R0ivpC2Fl75N9iVDXo82py0yybC9nsxV-I/edit#gid=0

If one would have kept IOTA on the exchange, no seeds would have been created and the funds would still sit there.

This is not ture as well. You should do some research before you claim such things

Always if someone says anything against your claims you call him a fanboy which also might not be true. And last but not least, you can stop posting with all your newly generated double accounts.

@runz fanboy

Read it again, and take of your pink sunglasses. And stop smoking, needless to say 

LOL, that's all you can say? Try again..

[generalizethis]

This sort of thing is par for the course for IOTA. Just look at their blog post history, nothing new here. As long as they don't have a seed generator in their wallet, people will of course use online seed generators. What other choices do mainstream investors have? It's hilarious they still haven't added a seed generator to their software even after all this, but unsurprising.

Dom said they didn't want to get into wallet development, sorry some misssed the memo, but my guess is the fud is to try to get it all in before the new wallets are released--good luck with that.

[Francis Freeman]

I think IOTA is one of the best and most innovative concept in the whole crypto-world. It has been the actual first one to try to overcome blockchain technology. Unfortunately the execution of this project has been very bad so far. I never invested in such shit and never will...