MyAlgo users urged to withdraw as cause of $9.2M hack remains unknown

Would You like a feature Interview?


All Interviews are 100% FREE of Charge

MyAlgo, a wallet provider for the Algorand (ALGO) network, warned users to withdraw funds from wallets created with seed phrases in an ongoing exploit that saw an estimated $9.2 million worth of funds stolen. .

MyAlgo tweeted this advice on February 27, adding that the cause of the recent wallet hacks is still unknown, and urged “everyone to take precautions to protect their assets.”

Early on February 27, the team murmured “Targeted Attack” Warning […] It was run against a group of well-known MyAlgo accounts.

Self-proclaimed “on-chain detective” ZachXBT outlined in a February 27 tweet that the exploit allegedly stole more than $9.2 million, allowing cryptocurrency exchange ChangeNOW to freeze about $1.5 million worth of funds.

According to MyAlgo, users with mnemonic wallets whose keys are stored in their internet browsers were particularly vulnerable to the exploit. Mnemonic wallets typically use 12-24 words to generate private keys.

John Wood, chief technology officer of the Algorand Foundation, a network governance body, said on Twitter on February 27 that about 25 accounts were affected by the exploit.

He added that the exploit was “not the result of an underlying problem with the Algorand protocol or its software development kit.”

Related: $700,000 leaked from BNB chain-based DeFi protocol LaunchZone

Algorand-focused developer collective report This eliminated multiple possible exploit vectors, including malware and operating system vulnerabilities.

The report states that the “most likely” scenario is that the affected user’s seed phrase was compromised via a social engineering phishing attack, or that MyAlgo’s website was compromised, resulting in a “targeted exfiltration of unencrypted private keys. I decided that it would lead to

MyAlgo said it will continue to work with authorities to conduct a “thorough investigation to determine the root cause of the attack.”