Algorand fights FUD from $9.2 million hack, wallet provider urges users to withdraw funds

Algorand wallet provider MyAlgo urged users to withdraw their funds as the project continues to investigate the cause of the recent $9.2 million hack.
John Woods, CTO at Algorand shared an update on the exploit, confirming there is no underlying issue with the protocol or the Software Development Kit.
ALGO price remained unchanged since February 27, the token yielded nearly 10% losses for holders over the past week.

Algorand (ALGO) is currently battling Fear, Uncertainty and Doubt (FUD) from a recent $9.2 million exploit. The foundation’s CTO John Woods assured users that the hack is not the result of an underlying issue with the protocol or the Software Development Kit (SDK).

ALGO community on crypto Twitter suspects a targeted attack was carried out against a group of MyAlgo (Algorand wallet provider) wallets.

Also read: Everything you need to know about Ethereum’s Shanghai hard fork and why it matters

Algorand users lose $9.2 million to targeted hack on MyAlgo

Algorand wallet provider MyAlgo users lost $9.2 million to an exploit on the project. John Woods, CTO of Algorand Foundation addressed the issue and asked users of MyAlgo to rekey to a ledger or a third-party wallet as a precautionary measure.

Woods confirmed that the exploit impacted 25 accounts holding ALGO, and it is not the result of an issue with the protocol or the project’s Software Development Kit (SDK). Woods assured ALGO ecosystem members that once the investigation concludes, he will do an explainer video covering how the exploit happened and how users can safeguard their funds.

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

The wallet provider has urged users to withdraw their funds and move them to other wallets for security reasons.

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 (@myalgo_) February 27, 2023

MyAlgo informed ALGO holders that users that are particularly susceptible to the exploit are the ones who have mnemonic wallets with keys stored in an internet browser. A mnemonic wallet typically uses between 12 and 24 words to generate a private key.

Algorand price remained unchanged since February 27. ALGO yielded nearly 10% losses for users since February 21, 2023. ALGO price is close to its weekly low of $0.2504. At press time the token is changing hands at $0.2530.

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