How a malicious seed generation website stole $4M
IOTA has been notoriously famous for rolling their own flawed hash function which allowed researches to develop a working PoC for hash collision attacks.<p><a href="https:&#x2F;&#x2F;medium.com&#x2F;@neha&#x2F;cryptographic-vulnerabilities-in-iota-9a6a9ddc4367" rel="nofollow">https:&#x2F;&#x2F;medium.com&#x2F;@neha&#x2F;cryptographic-vulnerabilities-in-io...</a><p>The CEO of IOTA David Sonstebo tells his users it&#x27;s not his problem if they lose money using IOTA because they&#x27;re too dumb to understand the design flaws:  <a href="https:&#x2F;&#x2F;np.reddit.com&#x2F;r&#x2F;CryptoCurrency&#x2F;comments&#x2F;7gwl38&#x2F;hello_guys_i_have_lost_30k_in_iota_and_i_would&#x2F;dqmpcb2&#x2F;" rel="nofollow">https:&#x2F;&#x2F;np.reddit.com&#x2F;r&#x2F;CryptoCurrency&#x2F;comments&#x2F;7gwl38&#x2F;hello...</a><p>Yikes.<p>IOTA also relies on a centralized sever owned and operated by David Sonstebo which takes periodic snapshots so transactions can be rolled back if the IOTA devs ever feel the want to.  <a href="https:&#x2F;&#x2F;domschiener.gitbooks.io&#x2F;iota-guide&#x2F;content&#x2F;chapter1&#x2F;current-role-of-the-coordinator.html" rel="nofollow">https:&#x2F;&#x2F;domschiener.gitbooks.io&#x2F;iota-guide&#x2F;content&#x2F;chapter1&#x2F;...</a><p>Further reading:<p>Nick Johnson: Why I Find IOTA Deeply Alarming <a href="https:&#x2F;&#x2F;hackernoon.com&#x2F;why-i-find-iota-deeply-alarming-934f1908194b" rel="nofollow">https:&#x2F;&#x2F;hackernoon.com&#x2F;why-i-find-iota-deeply-alarming-934f1...</a><p>Daniel Rice: Why I Also Find IOTA Deeply Alarming <a href="https:&#x2F;&#x2F;medium.com&#x2F;@thedrbits&#x2F;why-i-also-find-iota-deeply-alarming-99d4f2da3282" rel="nofollow">https:&#x2F;&#x2F;medium.com&#x2F;@thedrbits&#x2F;why-i-also-find-iota-deeply-al...</a><p>Eric Wall: IOTA Is Centralized <a href="https:&#x2F;&#x2F;medium.com&#x2F;@ercwl&#x2F;iota-is-centralized-6289246e7b4d" rel="nofollow">https:&#x2F;&#x2F;medium.com&#x2F;@ercwl&#x2F;iota-is-centralized-6289246e7b4d</a><p>Sidenote the founding developer of IOTA, Sergey Ivancheglo claims to have built a time machine <a href="http:&#x2F;&#x2F;come-from-beyond.com&#x2F;about-me&#x2F;" rel="nofollow">http:&#x2F;&#x2F;come-from-beyond.com&#x2F;about-me&#x2F;</a>