IOTA - Thousands of Wallets Compromised and Funds Stolen - page 4.

runz

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Quote from: jerry0 on February 05, 2018, 09:49:19 PM

Im thinking about buying iota. Do you guys suggest keeping iota in the exchange instead such as binance?

Also im bit confused here. So the iota wallet is very hard to use? Also there is no password? If thats the case, how is that even secure? So when you use the wallet, you have to create your own seed? How many words is that? And you basically make up your own words?

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

For the iota wallet you need to create a seed with 81 charakters (letters and the number 9). This seed is your password that gives you control of your coins. It is very important to NOT use online generators for your seed! Because if you use a third party website to generate your seed, you fully trust them that they don't save your seed on their website.

If you generate your seed offline your iota will be safe. Don't forget to write your seed on paper in case your computer crashes!

jerry0

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Im thinking about buying iota. Do you guys suggest keeping iota in the exchange instead such as binance?

Also im bit confused here. So the iota wallet is very hard to use? Also there is no password? If thats the case, how is that even secure? So when you use the wallet, you have to create your own seed? How many words is that? And you basically make up your own words?

whitespace

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I found all my Mi. Since the snap shots, my account balance showed 0 then I attached to tangle twice then it showed my two transactions with 537.888 Mi. I'm very happy now.

whitespace

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I just found out that all my IOTA were gone. I did not use on line generated seed. I created myself. I did hear about IOTA wallet issue so I checked my balance and they were there about two weeks ago(?) but today it was empty. What do I need to do? I had 537.888 coins there. When I set up a desk IOTA wallet, it wasn't easy. It was very hard to generate the seed myself so it took a few days to figure out but I finally did then transferred all my coins from Binance to my personal wallet. I did check time to time and they were fine until I found out that they were gone today. I'm not sure what I need to do at this point. There was no transaction history what so ever, no incoming nor out going. Please help!

mworld12

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Quote from: MadMac on January 20, 2018, 08:01:01 AM

If you bought IOTA, check your wallet. Chances are high that it is empty now.

Don't believe me? Open it and find out yourself that all your funds have been stolen.

How so? People were told to use online seed generators. Yes, a seed, online. Not from the wallet itself, no password, not protection at all. And one clever chap collected all the generated seeds and just cashed in.

What can you do? If it is still "Pending" then check out this posting from the official IOTA forum. If it says confirmed as it does for me, funds are gone.

https://forum.helloiota.com/9100/To-everyone-posting-with-stolen-balances

IOTA tries to blame people now for using the online seed generators. I think the party to blame is IOTA itself, for not putting a seed generator in their light wallet, and for not password protecting it.

This actually calls for class action as thousands of accounts were compromised!

(my x-post from Steemit)

this is the worst news ever i can't believe how much this will effect IOTA

terible.hunter

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Bitfresh - iGaming with 90s UI

Yes, I also heard about these sad news. This is of course very bad, let's hope that the development team will do something and fix the situation, but still the reputation is very fragile, so they will have to correct the situation for a very long time.

runz

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Quote from: runz on February 02, 2018, 04:57:49 AM

Quote from: MadMac on January 31, 2018, 10:03:46 PM

Perhaps 90% of all wallets used these online seed generators.

There were reportedly 4 million dollars stolen from people who didn't care about the security of their wallet. That's about 0.001% of all wallets

Quote from: MadMac on February 02, 2018, 08:51:31 AM

Wrong. In the meantime there have been much more compromised wallets and stolen funds reported. Links and more information you can find in this thread if you open your eyes.

Just because you fanboys live away from reality does not mean reality does not exist and this whole shit has not happened. Including that massive design flaw.

Quote from: MadMac on February 03, 2018, 11:14:33 AM

Please report here:
iotawalletloss.claims
https://forum.helloiota.com/9284/Call-to-action-lets-catch-the-thief

Do you see the first link on the website that you are suggesting (https://forum.helloiota.com/9284/Call-to-action-lets-catch-the-thief) ? It's a spreadsheet with all addresses and amounts of the stolen IOTAs.
Scroll down to line 517 and you can see that a total of 4 million dollar got stolen. So what about your claim that 90% of all IOTA wallets were compromised?

MadMac

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Please report here:
iotawalletloss.claims
https://forum.helloiota.com/9284/Call-to-action-lets-catch-the-thief

MadMac

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The only thing IOTA did was deleting all at that point affected and emptied wallets, thus destroying evidence.

http://iotafeed.com/index.php/2018/01/23/prepare-for-the-january-28-2018-iota-snapshot/

"The snapshot compacts the Tangle by removing parts of its history, except addresses with value."

bbmylove00

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It was 2 days ago. I was just shocked when I read it. My friend had a lot of money. I do not even know what his situation is. But this is just awful news. Scammers have stolen so many passwords. I do not even know how IOTA will cope with this situation. And how they will decide this.

JustusJones86

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Quote from: MadMac on January 21, 2018, 11:17:31 AM

I disagree. It is a huge design flaw. The very thing they would need to implement is:
1) create seeds locally
2) password protect the wallet.

I totally agree on that...

walterw

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Quote from: dumplingsandsushi on February 02, 2018, 01:11:40 PM

And you know the worst part about this is? Iota fanboys.
Their reaction to any criticism is, “you just dont understand it cause youre stupid”

Read the thread again. It explains exactly where people who rely on an unauthorized third party have made a mistake.
I do not understand why you immediately claim that they're fanboys just because they disagree.

dumplingsandsushi

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I am one of those whose wallet was compromised. Fortunately, i only had 216miota.
The thing is, i was seriously thinking of buying in big with iota, around 13 a 15k usd.

Iota is the project that i so desperately want decentralized currency to be like, but just never delivers.
Of course, there are those who say that it is still in its infancy and needs time, but we are at the point where there are many systems and platforms out there that already provide no fees and infinite scaling, not to mention up and coming ones.

Now, it seems that iota is just going to be overtaken this year.

And you know the worst part about this is? Iota fanboys.
Their reaction to any criticism is, “you just dont understand it cause youre stupid”
Ok sure. Have a nice life then.

JustusJones86

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Still, IOTA wallet is kind of a mess. I still do not understand why they did not use a password as an additional layer of security. And BTW: I did not use a key generator and I still lost a considerable amount of IOTA...

walterw

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Quote from: MadMac on February 02, 2018, 08:51:31 AM

Just because you fanboys live away from reality does not mean reality does not exist and this whole shit has not happened.

I knew that you call everyone a fanboy who disagrees with you. Roll Eyes

I have no IOTA coins and I have no plans to buy any, but at least I can differentiate.
You simply made crap by trusting that an unauthorized third party could create the seed for you. Any reasonably intelligent person would have known that you should never do such a thing.
You did not even come up with the idea to change the generated seed a little bit.

Quote from: runz on February 02, 2018, 10:34:38 AM

What exactly is a fanboy? Is it somebody who secures his wallet such that hackers can't steal his funds? If this is the case then I am a fanboy, yes Cheesy

No, it is anyone who does not agree. Cheesy

runz

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Quote from: MadMac on February 02, 2018, 08:51:31 AM

Wrong. In the meantime there have been much more compromised wallets and stolen funds reported. Links and more information you can find in this thread if you open your eyes.

There is no link in this thread that states that 90% of all wallets are compromised. This is just a story you came up with

Quote from: MadMac on February 02, 2018, 08:51:31 AM

Just because you fanboys live away from reality does not mean reality does not exist and this whole shit has not happened. Including that massive design flaw.

What exactly is a fanboy? Is it somebody who secures his wallet such that hackers can't steal his funds? If this is the case then I am a fanboy, yes Cheesy

MadMac

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Wrong. In the meantime there have been much more compromised wallets and stolen funds reported. Links and more information you can find in this thread if you open your eyes.

Just because you fanboys live away from reality does not mean reality does not exist and this whole shit has not happened. Including that massive design flaw.

runz

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Activity: 103

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Quote from: MadMac on January 31, 2018, 10:03:46 PM

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

you prove again that you have no technical knowledge about how cryptos work. Do you really think that exchanges don't generate seeds? Where do you think they store the coins?

Quote from: MadMac on January 31, 2018, 10:03:46 PM

Perhaps 90% of all wallets used these online seed generators.

There were reportedly 4 million dollars stolen from people who didn't care about the security of their wallet. That's about 0.001% of all wallets

Quote from: MadMac on January 31, 2018, 09:48:43 AM

In this case it did not help as the seed, that's how they call their private key, was generated online by malicious sites they promoted in their forum, as their own client did not have the functionality to create such.

The Iota Team warned about online generators. See this post from August 2017 (long before funds got stolen)

"All things considered, seed generators are still not considered safe if they come from a third party source, and not considered best practice. I would caution people against using this tool at this time. (https://forum.iota.org/t/iotaseed-io-now-also-for-generating-paper-wallets/3915)"

walterw

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Quote from: MadMac on January 31, 2018, 10:03:46 PM

And there was no protection at all

You say it yourself. There WAS no security or protection (but I do not agree). You would not have allowed to transfer your responsibility (to ensure that only YOU create and own the seed) to a third party.
You did not fulfill this responsibility. You must now bear the damage yourself, because you have caused the damage in principle yourself.

MadMac

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Quote from: walterw on January 31, 2018, 06:39:59 PM

Anyway, it is not right to store your coins at an exchange. Why you should not do it, I explained above.

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. And there was no protection at all. No authorization, meaning one could not password (or better) protect these private keys.

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

Topic: IOTA - Thousands of Wallets Compromised and Funds Stolen - page 4. (Read 2621 times)