IOTA Community Helps Authorities With Arrest of Fraud Suspect

Europol announced the arrest of a 36-year-old fraud suspect who os believed to have created a fake seed generator.

The man has been arrested due to a combined effort from the IOTA community and the law enforcement.

How Was the Fraud Caught?

The IOTA Foundation wrote a detailed piece on the series of events that led to the arrest of the suspected fraudster.

In the middle of 2017, some user accounts were violated after using a fraudulent website that generated seeds.

Criminals started moving tokens in huge amounts from compromised wallets on January 19, 2018.

The news first surfaced in the Discord #support channel where users reported that funds were taken from their wallets.

The IOTA community quickly responded to the event and tried to save the funds whenever it was possible.

The news of the emptying wallets quickly spread.

The IOTA Foundation was struck by the event as it was still in its early days with new team members still being onboarded. The Foundation had only started a few months prior, with just the founders and core developers involved.

After being alerted, the Foundation worked with law enforcement by giving resources and time.

The HelloIOTA forum also reached out and started another forum that collected victims data.

Winston and Alexa from the HelloIOTA forum got in touch with the IOTA Foundation and developed a reporting format together.

As the victims could now state their issues at a single place, information collected from the forum was given to the German police.

Finding out the Issue

The Foundation and HelloIOTA then worked closely with law enforcement to assist them wherever needed.

The investigation found the root of the problem within a few months.

IOTA Foundation stated:

“From that time on, patience was the only tool available. The legal machinery continued to progress. Since this became an international affair, it was clear that it would take some time.”

It also said that communication was open with the authorities even during periods of silence.

The Foundation states that from this point on it’s important to be patient as everyone should be entitled to a fair trial and defense.

It also urged other victims who have not spoken out yet or others who may have information related to the case to come out and talk to the police.

IOTA Community Helps Authorities With Arrest of Fraud Suspect was originally found on Cryptocurrency News | Blockchain News | Bitcoin News |