As previously reported, there was a security problem at Iota last week. Iotacoins worth about $1.6 million in total were stolen by hackers from about 10 wallets. As a result, the Iota Foundation (IF) has shut down the coordinator to prevent further damage. The error could not be found immediately.
Special cyber forensic experts were consulted to track down the vulnerability. On 14 February, 2 days after the attack, the IF announced that it had found the bug. As correctly suspected by CryptoTicker, the problem was in a module of the Trinity Wallet for which an external party is responsible. If the vulnerability was intentionally introduced into the code or if it was an accident is not known yet.
The IF will publish a comprehensive report on the incident. In the meantime, it has announced on its own website that the security hole has been fixed. The new version (1.4.0) is only a temporary transition tool. Nevertheless everyone is advised to replace the old software with the new one.
New debate about the Coordinator
Although it is common knowledge that Iota is centralized by the coordinator, critics could not hold back.
“3 days since Iota switched off the Coordinator. All the food in my IOT smart fridge has gone bad. I wanted to go to the grocery store, but not even my Volkswagen would start. I’m dying. Please I could really use some donations. My IOTA address is EIDJAL12348015IOTAISASCAM”
Former Bitcoin Core developers and scene size with nearly 150,000 followers on Twitter, Peter Todd, also commented on the topic.
“In case you’re wondering if Iota is centralized. Is it 100%”
Nevertheless, there will be many Iota owners who have been longing for the Coordicide (final shutdown of the coordinator) and are now lucky to have been able to pull the emergency brake. If iota had been running decentralized in this situation, many more iotas could have been stolen and the damage could have been much higher. Under certain circumstances a total loss would also be possible.
According to the theory of antifragile systems, any damage that does not destroy the system has a strengthening effect. So iota will also emerge strengthened from the situation in the end. The question whether decentralization really only brings advantages remains as a bitter aftertaste.