MyAlgo advises users to withdraw funds following $9.2M hack

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The Algorand wallet provider reported it still hasn’t determined the cause of exploit that’s drained millions in ALGO, urging users to withdraw funds from wallets created with a seed phrase:

 

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• Algo CTO said the recent exploit was not from an issue with Algorand protocol or SDK.
• John Wood promised an explainer video covering how the exploit happened.
• ALGO trades at $0.2501 with a negative seven-day growth of 10%.

In a recent tweet, John Wood, the Chief Technology Officer (CTO) at Algo Foundation, provided an update regarding a $9 million exploit that impacted a few accounts. Wood clarified that, based on their investigation, the hack was not caused by any underlying issue with the Algorand protocol or its software development kit (SDK).

1/n Update on the exploit impacting ~25 accounts: from our investigation, this is not the result of an underlying issue with the Algorand protocol or SDK.
— John Woods (@JohnAlanWoods) February 27, 2023

Pending the outcome of the investigative process, the Algorand CTO offered a precautionary measure to users using a hot wallet with MyAlgo. He suggested that user rekey to a ledger or another third-party wallet to safeguard their assets. Wood promises that once the inquiry concludes, he will provide an explainer video that covers how the exploit happened and how users can best protect themselves in the future.
According to blockchain investigator ZachXBT, over $9 million worth of Algorand tokens and USDC were stolen from Algorand in an attack between February 19 and 21. However, the centralized exchange ChangeNow was able to freeze $1.5 million of those funds.
Consequently, MyAlgo, a native wallet for Algorand, asked all users to withdraw any funds left from the Mnemonic wallets.
Furthermore, data from the market tracking site CoinMarketCap, shows that the native token ALGO likely suffered a bit from the events based on its seven-day cumulative performance. ALGO trades at $0.2501 with a negative seven-day growth of 10%.
On the other hand, crypto traders bought and sold over $55 million worth of the coin in the past 24 hours, which was 45% higher than the previous day.
The post Algorand CTO Says the $9M Hack Was Not a Fault From Their End appeared first on Coin Edition.

Source: CoinEdition