Stolen $11.4 Million IOTA Tokens Now Under Europol Custody

Wilfred Michael 

Wilfred Michael

News reporter

31 January 2019,
14:09
Stolen $11.4 Million IOTA Tokens Now Under Europol Custody

Millions of IOTA tokens that were purportedly stolen in January 2018, by a U.K resident is now with European Authorities according to fresh reports by Reuters.

In line with Europol’s arrest of the suspect last week, IOTA’s co-founder Dominik Scheiner said in yesterday’s report that “just a small amount of the 10 million euros has not been found. The exchanges have blocked the hacker’s accounts. He tried to free the money, but he did not succeed.”

The authorities now are in charge of the funds and hope to use it as a piece of evidence in a court trial against the suspect.

Meanwhile, contrary to earlier claims by IOTA that the theft was carried out by a group, the new report states that the person behind the crime is a man “ who had a normal job and is well-educated.”

In an earlier report about the incident, we disclosed that the suspect, whom authorities have refused to name until now, carried out his scheme through a website: iotaseed.io.

The website was supposed to serve as a seed generator (a site that helps IOTA token holders generate an 81-digit security key). However, the suspect only used the site as a medium to collect newly created IOTA seeds from unsuspecting users.

He subsequently used these seeds to access IOTA wallets belonging to his victims and moved their funds to wallets he had created with fake ID’s.

Through the collective effort of European Police authorities, the suspect was traced to his location in Oxford, U.K and arrested last week.

The case involving the U.K man was only one out of the five crime reports in the crypto industry last week. In other standout cases, promoters of IBcoin were arrested by Taiwanese authorities, Israeli crypto-investor Moshe Hogeg was sued for a $4.6 million fraud while peer-to-peer crypto exchange, LocalBitcoins was hacked.

 

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