Algorand (ALGO)-Based Crypto Wallet Urges Users To Withdraw Assets After $9,600,000 Attack

An Algorand (ALGO)-based crypto wallet that was recently hit with a nearly $10 million attack is now urging users to withdraw their digital assets.

MyAlgo, a leading Algorand wallet gateway, tells its Twitter followers to withdraw any funds held in Mnemonic wallets.

“IMPORTANT: We strongly advise all users to withdraw any funds from Mnemonic wallets that were stored in MyAlgo. As we still don’t know the root cause of recent hacks, we encourage everyone to take precautionary measures to protect their assets. Thank you for your understanding.”

MyAlgo further clarifies,

“Do not rush things and make sure you are transferring funds or rekeying accounts in a safe manner. The attacks happened over one week ago, and no other movements have taken place since then. Take your time and avoid mistakes. Reach out for help if you have questions.”

In response to MyAlgo’s initial announcement, popular on-chain detective ZachXBT updated crypto Twitter (CT) on the probable cause for the advisory.

“I haven’t seen many posts about this on CT yet but it’s suspected over $9.2 million (19.5 million ALGO, 3.5 million USDC, etc) has been stolen on Algorand as a result of this attack from Feb 19th to 21st.

ChangeNow shared they were able to freeze $1.5 million.”

Algorand Foundation CTO John Woods says about 25 wallets were affected by the attack.

“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.

If you are currently a user of a hot wallet with MyAlgo, we recommend rekeying to a ledger or other 3rd party wallet as a precautionary measure.

When the investigation concludes, I’ll do an explainer video covering how this happened and how to best safeguard yourself in the future.”

Algorand is trading for $0.251 at time of writing, down 2.41% on the day.

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