- MyAlgo advises customers to withdraw digital assets from its platform as the cause of the $9.2m exploit is yet to be discovered.
- The firm crypto advocates for using hardware wallets rather than mnemonic wallets.
- ChangeNow froze a portion of the stolen funds.
The wallet provider of the Algorand Network—MyAlgo—was one of the latest crypto firms to be exploited, losing almost $10 million.
On February 27, MyAlgo announced on Twitter that it had been compromised and had lost $9.2 million of digital assets. The firm stated that it did not know the cause of the exploit, which resulted in the loss of funds.
The firm urged its users to withdraw all their funds from the platform and keep them safe elsewhere as it confirmed that the users affected by the exploit had the highest record of digital assets stored on the wallet provider’s platform.
Although MyAlgo (ALGO) cannot identify the cause of the exploit, the firm indicated that its users, particularly with Mnemonic wallets, were likely to be targeted, and they were advised to withdraw and protect their assets which are stored on the platform.
MyAlgo stated that its attacked users had “significant funds in their accounts,” but we’re all using Mnemonic wallets, allowing attackers easy access to their accounts on the platform.
According to the tweet, MyAlgo admitted that the exploit on the wallet provider happened over a week ago, and there have been no other suspicious activities since then.
However, users are expected not to relent on this information, so MyAlgo advised its customers to take precautionary steps in safeguarding their digital assets.
“As we still don’t know the root cause of recent hacks, we encourage everyone to take precautionary measures to protect their assets,” the tweet reads.
ZachXBT, a self-acclaimed on-chain investigator, quoted the wallet provider’s tweet on February 27, announcing that he was yet to see news of the exploit on CT. He shared an image stating that the Algorand exploit happened between February 19 to 21st.
However, according to ZachXBT, a portion of the stolen assets was confiscated by a crypto exchange, “ChangeNow.” ChangeNow was said to have frozen $1.5 million of the $9.2 million.
Since the event, MyAlgo announced that it was in talks with the affected users and also advised that its users switch from hot wallets to hardware wallets.
“We know the risks of mnemonic hot wallets and have been advocating for the use of hardware and multi-sig wallets,”
The CTO of the networks’ governance department at Algorand, John Woods, gave an update on Twitter about the exploit of its wallet provider, stating that 25 customers were estimated to have been attacked in the exploit.
Conclusion
The crypto industry is ever marred by insecurity as hackers lurk around every corner of a blockchain. A recent exploit has led to MyAlgo advising its users to take precautionary measures in protecting their assets on its platform.
