• MyAlgo, a wallet provider for Algorand (ALGO), has advised its users to withdraw funds after suffering a $9.2 million exploit.
• The hack was a targeted attack on high-profile Algorand wallets and the crypto exchange ChangeNOW has frozen $1.5 million worth of crypto linked to the attack.
• MyAlgo has advised users to take precautionary measures to protect their assets, including withdrawing funds from Mnemonic wallets that were stored in MyAlgo and switching to a ledger wallet or opening a new account.
MyAlgo Suffers $9.2M Hack
MyAlgo, a wallet provider for Algorand (ALGO), has suffered a $9.2 million exploit and is advising its users to withdraw funds as it continues to investigate the cause of the hack. John Woods, CTO of Algorand Foundation, revealed that 25 accounts holding ALGO were impacted by the attack but confirmed that the exploit was not because of a flow in Algorand’s Software Development Kit (SDK).
ChangeNOW Freezes $1.5 Million
On-chain sleuth ZachXBT confirmed the attack, stating that crypto exchange ChangeNOW has frozen $1.5 million worth of crypto linked to the attack. MyAlgo referred to the hack as a targeted attack on high-profile Algorand wallets and noted that no other movements have taken place since then.
Precautionary Measures Advised
MyAlgo tweeted on Monday that despite investigations, it still doesn’t know the root cause of the exploit and advised users to take precautionary measures to protect their assets. Wallets created with seed phrases are more susceptible and users have been advised to switch to a ledger wallet or open up a new account instead of using mnemonic wallets going forward.
Root Cause Unknown
MyAlgo is yet to determine what caused this hack but they have warned their customers against storing large amounts of ALGO in Mnemonic wallets which may be vulnerable due to lack of security protocols like two-factor authentication or multi-signature setup being used by some exchanges .
Despite undergoing investigations into what caused this exploit, MyAlgo is advising its users as well as all ALGO holders across different exchanges to take precautionary measures like transferring funds out from Mnemonic Wallets hosted on its platform and moving them over into Ledger Wallets or creating new accounts rather than trusting existing ones with significant amounts stored in them until further notice from either party involved here .