IOTA co-founder Sønstebø will compensate hack victims personally

  • IOTA co-founder David Sønstebø announced that he will personally compensate the victims of the Trinity wallet hack.
  • The migration phase for the Trinity wallet ends today, an exact date for the restart of the IOTA Tangle is still to be announced.

After last Saturday’s release of the seed migration tool for all potentially affected users of the IOTA Trinity wallet hack, today marks the seventh and final day of availability of the tool. Until today, March 7th, 17:00 (UTC), Trinity users have the opportunity to migrate their seeds. It is expected to take two to three days for the IOTA Foundation to review the submitted seeds.

If two people in the migration phase attempt to migrate the same seed to a new seed, a KYC process will be triggered. Both persons have to identify themselves to the IOTA Foundation personally by means of identity documents. This prevents the hacker from stealing further MIOTA after the relaunch of the Tangle.

The IOTA Foundation will construct a valid Tangle by creating a new snapshot with the submitted new seeds. Although an exact start date for the IOTA Tangle to be reinstated is still pending, according to the original schedule, this should be done no later than the 10th day after the start of the migration tool, which would be March 10th.

IOTA co-founder will compensate Trinity hack victims

According to the information known so far, about 8.55 Ti (8,550,000,000,000 IOTA), about 2.37 million US dollars, were stolen in the course of the IOTA Trinity wallet hack. As was announced yesterday, the IOTA Foundation and co-founder David Sønstebø will compensate the victims personally. Sønstebø stated:

To bring assurance to everyone, I will commit to the fact that all victims identified here shall be made whole again. […] In practice this means that a significant portion of my own holdings will go towards resolving this unfortunate incident. I have made the decision to safeguard the IOTA Foundation’s runway. We are closer than ever to crossing the finish line in terms of delivering on the tech and paving the road towards adoption and standardization ever.

Via Discord, Sønstebø added that both he and the IOTA Foundation are fundamentally unaccountable. However, he decided to use his personal IOTA to compensate for the hack victims because he and the IOTA Foundation recommended the Trinity wallet after the problems with the fake seed generators for the light wallet:

You are right in the sense that I am not legally ‘accountable’, however, I did start IOTA and co-founded the IOTA Foundation. Not to get rich, but to bring IOTA’s vision to life. I won’t get into intricate details, but at the end of the day the fact is that IF (which I oversee) encouraged everyone to use Trinity after the infamous seedgenerator attack. We certainly weren’t obligated to take on this responsibility, but we did. […]

As a leader of IF I do indeed feel responsible for the outcome of this decision. While the MoonPay incident was minor in terms of the grand scope, and doesn’t affect IOTA as a technology or project overall, we still fucked up.

Furthermore, Sønstebø stated that the hunt for the hacker is still going on, but that it is very difficult. Furthermore, a large number of the stolen IOTA have already been swapped via exchanges.

We are still determined to catch him, but I can’t disclose any details due to the fact that this is now largely up to the authorities with IF as special expertise assistance. I just don’t want to get anyone’s hopes up. There’s been 100s, if not 1000s of “hacks” in crypto in the last years and to my knowledge our hunt down of the fake seedgenerator perpetrator is one of the very rare success stories…

However, we got the same people chasing this fuckface, so we haven’t lost hope, but we are moving on as a project overall. There’s too much great stuff on the horizon to focus on.

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About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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