IOTA is back online nearly a month after $2 million attack on wallet software users

The IOTA network went back online Tuesday after an extended shutdown following an attack on users of the Trinity wallet software.

When the attack happened on Feb 12, the IOTA Foundation – a non-profit group that oversees the development of the network and runs the so-called Coordinator node – took down  the Coordinator to stop value transactions and protect Trinity users from further thefts of their tokens. Around $2.2 million in IOTA tokens were stolen from users as a result of vulnerability.

The IOTA Foundation has transitioned users to new accounts and resumed its transaction confirmation system on Tuesday, the group said. At the same time, the team offered users a new tool to let them transition to a new, secured account. In a Tuesday blog post, the IOTA Foundation announced that the transition is now complete and the Coordinate has been brought back online. 

Moreover, in an email statement to The Block, the group revealed that IOTA cofounder David Sonstebo plans to personally reimburse all victims involved in the $2.2 million theft.


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According to the blog post, the team is still working to identify the attacker.

"We continue to work with the FBI, as well as the UK, German, and Maltese police to identify and track the attacker," said the blog post. "With the restart of the Coordinator, we are together actively monitoring for any suspicious activity."

The blog post also provided details on moves the IOTA Foundation will take to reduce the likelihood of a similar occurrence in the future.

"The IOTA Foundation is overhauling its internal processes, with upcoming changes to software security practices, improvements to our security capabilities and resources, and expansion of our efforts in education and best practices for any software that handles user accounts on the IOTA network," the group wrote. 

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Yilun joined The Block in November 2019. She has a policy background and extensive experience in reporting and writing. She has worked on stories ranging from business to politics.