IOTA Founder Personally Refunding Hack Losses to 'Safeguard' Project's Remaining Reserves

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An IOTA executive is personally reimbursing victims of February's Trinity wallet hack in order to "Preserve" the project's runway, he told CoinDesk.

The founder of the distributed ledger network, David Sonstebo, said he would repay people affected by the $2 million hack from his own IOTA holdings.

The "Main motivation for the decision" had been to "Safeguard the IOTA Foundation's runway" over the next 12 months, he added.

The foundation was forced to suspend the IOTA network in February after hackers stole more than 8.5 million in IOTA's native token MIOTA, worth approximately $1.4 million at the time of writing.

IOTA has predominately funded itself from a pot of community donations of MIOTA tokens, held in an endowment fund administered by its foundation.

Although Sonstebo emphasized the foundation was "Well funded at the moment," it has started diversifying revenue, trying to identify new ventures so they no longer have to rely solely on the endowment fund.

Foundation co-founder Dominik Schiener said to CoinDesk that IOTA "Regularly gets grants from governments," having already received four so far this year.

Sonstebo said IOTA has also received funding from some big corporates who "Are paying for the development of the joint ventures." That includes, according to Schiener, some members of the IOTA working group founded back in February.

The IOTA project finds itself sailing between ever-tightening fiscal straits.

"While the IOTA Foundation is well funded at the moment, we still have a long road ahead," the founder said.

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