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://medium.com/@neha/cryptographic-vulnerabilities-in-iota-9a6a9ddc4367" rel="nofollow">https://medium.com/@neha/cryptographic-vulnerabilities-in-io...</a><p>The CEO of IOTA David Sonstebo tells his users it's not his problem if they lose money using IOTA because they're too dumb to understand the design flaws:  <a href="https://np.reddit.com/r/CryptoCurrency/comments/7gwl38/hello_guys_i_have_lost_30k_in_iota_and_i_would/dqmpcb2/" rel="nofollow">https://np.reddit.com/r/CryptoCurrency/comments/7gwl38/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://domschiener.gitbooks.io/iota-guide/content/chapter1/current-role-of-the-coordinator.html" rel="nofollow">https://domschiener.gitbooks.io/iota-guide/content/chapter1/...</a><p>Further reading:<p>Nick Johnson: Why I Find IOTA Deeply Alarming <a href="https://hackernoon.com/why-i-find-iota-deeply-alarming-934f1908194b" rel="nofollow">https://hackernoon.com/why-i-find-iota-deeply-alarming-934f1...</a><p>Daniel Rice: Why I Also Find IOTA Deeply Alarming <a href="https://medium.com/@thedrbits/why-i-also-find-iota-deeply-alarming-99d4f2da3282" rel="nofollow">https://medium.com/@thedrbits/why-i-also-find-iota-deeply-al...</a><p>Eric Wall: IOTA Is Centralized <a href="https://medium.com/@ercwl/iota-is-centralized-6289246e7b4d" rel="nofollow">https://medium.com/@ercwl/iota-is-centralized-6289246e7b4d</a><p>Sidenote the founding developer of IOTA, Sergey Ivancheglo claims to have built a time machine <a href="http://come-from-beyond.com/about-me/" rel="nofollow">http://come-from-beyond.com/about-me/</a>