- IOTA was rolled out in July last year as a user-friendly wallet. Since its launch, the portal has been facing a series of hacking challenges.
- The portal has had its share of attack as millions of dollars have been stolen from the wallet.
- Team members say the portal could remain closed until after the investigation. It could take a long time before the investigation is complete.
A recent report reveals that IOTA is shutting down its network to solve the Trinity wallet hacking incidence on its network. The company announced yesterday and said it was working with law enforcement agencies to speed up the investigation. It said it is also working with some cybersecurity experts to look into the coordinated attack that resulted in the theft of its funds in the wallet.
The company commented on its webpage that it is closing the network, and users are advised not to open the portal until they receive such notice from the company.
However, even though the network is down, the zero-fee approach allows some users to make data transactions, although transactions carrying financial value are not possible.
IOTA facing serious security controversies
The security of IOTA has been a subject of discussion in recent times. The question of the portal’s security began in 2018 when MIT researchers and the IOTA’s developers were in disagreement over the security protocol of IOTA. In 2018, an attacker stole about $11 million via a phishing attack.
The portal could stay closed for a long time
IOTA did not disclose how long the network will remain closed but stated that the investigative team is working to see that the problem is resolved as soon as possible.
When the announcement was first made by IOTA on February 12, it only advised users not to use or open the Trinity wallet. However, the more stringent measures the company is taking means that the issue may not be dealt with speedily.
Apart from closing the network from users’ access, IOTA has been using KYC information to reach victims.
Cyber attack details
Trinity was released by IOTA as a user-friendly wallet in July last year. Although the wallet was scrutinized by two different cybersecurity establishments, the short lifespan of the software made the researchers overlook its weakness.
But some reports suggested Trinity’s early version could be the source of the weakness where the hackers were able to successfully attack the wallet. However, no one has confirmed this statement yet.
IOTA is concealing the details of the attack to the general public to prevent giving other hackers ideas to carry out their own attack. But IOTA has managed to reveal that the attackers stole seeds, which allowed them to get wallets already created by Trinity users.
Also, IOTA has disclosed the magnitude of the attack. The company is currently working with information of about 10 victims who are representing more than 50% of the affected users. The IOTA team revealed that the attackers stole about $1.2 million worth of IOTA tokens.