IOTA founder will repay hack victims from his funds

by in Blockchain News

Founder of IOTA

On Saturday, March 7, the deadline set aside for IOTA users to transfer assets to new Trinity wallets expires. At the same time, the founder of the project David Sonstebo said that out of his funds, he compensates for the loss of users affected by the theft of funds in February.

According to Sonstebo, the law firm that conducts the case did not manage to present a compensation plan in time and assess the responsibility of the creators of the project.

“To guarantee everyone, I accept the need for full compensation for all identified victims. I launched the IOTA project and was the co-founder of the IOTA Foundation, and I consider myself responsible for the fact that I could not prevent such a situation. All these users are innocent victims,” he said.

Trending: Coinbase wallet users get direct access to cryptocredit

According to Sonstebo, a significant part of his funds will be used for this.

He also added that at the moment, the IOTA project is very close to fully implementing the technology and achieving its mass distribution. At the same time, the IOTA Foundation continues to work with law enforcement and does not lose hope of finding an attacker.

“We still intend to find him, but the case is under the jurisdiction of the authorities, and I cannot disclose all the details. I do not want to give false hopes. There is too much great news ahead that should be addressed, ”added Sonstebo.

On February 12, attackers withdrew funds from several Trinity wallets, allegedly gaining access to seed phrases before this. Losses amounted to about $ 2.4 million.

Trending: Pantera Capital CEO told when Bitcoin will reach $20,000

During the investigation of the incident, the IOTA team stopped the transfer of assets on the network, holding the work of the Coordinator, the transaction confirmation mechanism. Later, the developers introduced a secure version of the wallet, but the network did not resume.

Earlier this week, developers recommended using the Seed Migration Tool to transfer tokens to new protected addresses.