The IOTA network relaunch has been a huge topic in our cryptocurrency news lately and now we have official confirmation that it began its seed migration period on February 29 with plans to reopen the network around March 10. Even though many criticized the decision to close the Coordinator, this may have saved a lot of users funds from being stolen.
As you probably know, the IOTA network was shut off on February 12 shortly after the team there received multiple reports about drained user wallets. All of this was possible thanks to the presence of the Coordinator, a centralized transaction verifier which is required to operate the network.
Shutting down the Coordinator also stopped the attacker from draining any more user wallets and gave the team time to investigate the issue further. However, the problem was not easy to solve, as the team soon realized that the attacker compromised the private seeds of many users.
This is what inspired the IOTA network relaunch, soon after the Iota Foundation (IF) identified a third party integration with Moonpay, a fiat-crypto gateway service as the culprit. Through the insecure Content Delivery Network (CDN) call, the wallet loaded the Moonpay code and was accessed through a simple HTTPS request, similar to loading a browser page. Analysis in the IOTA news later showed that the attacker had manually changed the IP behind this CDN address.
Even though the network shutdown prevented any more tokens from being stolen, now we are seeing an IOTA network relaunch as part of IF’s plans. The team previously had to develop a seed migration tool which would immediately transfer the tokens away from the affected wallets.
Many people criticized IOTA for the apparent centralization and said that the network is “dead” but there were also fans backing the network. Later on, the co-founder of Iota issued a statement in which he said:
“While this was a very unfortunate event, it shows that we at the IOTA Foundation are very committed to protecting the funds of the IOTA users and it shows that we have professionally responded to such a major incident. While our trust may be broken for some within the crypto community, our partners still stand behind us and believe in the future of IOTA.”
As a final note, he said that the team is confident that it will work their way back to where they were and “make everyone within the community believe that IOTA is on the right path.”
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