IOTA Foundation, the team behind IOTA [MIOTA] – the fourteenth largest cryptocurrency in the space, has announced that they recovered a majority of the funds that were stolen from investors’ wallets in 2018. The funds that were recovered was approximately $11 million and is currently being used as evidence that can be used against the alleged perpetrator by the law enforcement.
The co-founder and co-chairman of IOTA board, Dominik Schiener, said in an interview with Reuters:
“From what we know, just a small amount of 10 million euros has not been found. The exchanges have blocked the hacker’s accounts. He tried to free the money, but he did not succeed.”
The co-founder further stated that the hack was carried out by an individual, identified to be a citizen of United Kingdom with a “normal job”, contrary to their initial theory of a group organized hack. The hacker was arrested by the European Union Agency for Law Enforcement Cooperation [Europol], last week. So far, the agency has refused to disclose the identity of the alleged perpetrator.
Terminator0611, a Redditor said:
“This is sort of good news. Most tokens where stolen when they valued aprox 2 to 5$ each. If you reclain those tokens it would be a “Doekje voor het bloeden” as the dutch would say”
The hack was first reported to Hessen State Police in early 2018, wherein it was bought to notice that cryptocurrencies were being stolen from investors wallets. The funds were stolen through IOTAseed.io website, a portal that generates a string of 81-digit seed that is required to access the IOTA wallet.
The perpetrator is reported to have operated the portal for about five months prior to carrying out the heist. The data of the seed generated by investors was stored on the platform’s server, which was later used to steal the cryptocurrency from their wallets.
Person51389, another Redditor, said:
“But will they get their money back at those prices ? Probably not. Unless the hacker converted to something else that did not go down much. Considering the whole market is down around 80%..most likely all they got was coins worth 80% less too. Which means..the people get 20% of their money.”
The Redditor further added:
“Another reason why there is no mass adoption from the general population. No insurance on loss for the most part, you are at the whim of so many factors if your coins are lost and most likely…its a loss. And..for most people its just too complicated to even attempt with such a risk.”