IOTA shuts down entire network after hackers target IOTA wallet app to steal $1.6 million of IOTA cryptocurrency user funds

The IOTA Foundation, the nonprofit organization behind the IOTA cryptocurrency, has shut down its entire network this week after hackers exploited a vulnerability in the official IOTA wallet app to steal user funds. The attack happened  on February 12, 2020, according to a message the foundation posted on its official Twitter account. According to published reports, within 25 minutes of receiving reports that hackers were stealing funds from user wallets, the IOTA Foundation shut down “Coordinator,” a node in the IOTA network that puts the final seal of approval on any IOTA currency transactions.

IOTA members said hackers used an exploit in “a third-party integration” of  Trinity, a mobile and desktop wallet app developed by the IOTA Foundation. It is believed that hackers targeted at least 10 high-value IOTA accounts and used the Trinity exploit to steal funds.IOTA Foundation members said law enforcement officials have been notified and are involved in tracking down the attackers. The foundation is also working on an update for the Trinity wallet apps to patch the vulnerability exploited in the hack. In the meantime, IOTA members recommend that users don’t open their wallets until the update is released and installed on their devices.

IOTA is currently ranked #23 on the CoinMarketCap based on the currency’s market cap size. The IOTA price fell from $0.35 per IOTA coin on Wednesday to $0.29 today.