Has MyAlgo Been Hacked? How Much Is The Total Damage?

MyAlgo, an algorithm and wallet service, was hacked. Although there was no initial denial after the attack rumors, MyAlgo preferred to remain silent for a long time. This led to the emergence of some rumors and even intensified them. Later, the statement came because they feared the growth of rumors.

Moving Away From Digital Wallets

Algorand wallet provider MyAlgo announced in a statement that it had been attacked. The statement, which said the source of the attack remains unclear, advised customers to withdraw their cash from their digital wallets.

In a tweet, the MyAlgo program instructed its users to withdraw their money from the wallets set up with the statement. The statement said MyAlgo was attacked, but the location of the hackers and the vulnerability remain unclear.

$10 Million Loss

The crypto researcher, identified on Twitter as ZachXBT, noted that $9.2 million in assets were stolen as a result of his investigation. ZachXBT reported that 19,500,000 ALGO and 3,500,000 USDC were recovered.

In addition, ChangeNOW claimed to have recovered and frozen $1.5 million of the stolen funds. When MyAlgo did not respond, a group emerged claiming the rumors were unfounded. As these and similar incidents show, it is always important to be transparent about what is going on. Otherwise, both the rumors and the process will grow and lead to serious inefficiencies. When all of these options come together, MyAlgo seriously loses credibility.

Is The Vulnerability Due To User Error?

John Wood, director of the Algorand Foundation, estimates that a total of 25 accounts have been compromised. It is believed that the people whose money was stolen stored their digital wallet passwords in their web browsers. MyAlgo allows users to create and store their own keywords. The keywords never leave the user’s device.

It is recommended to store these frequently used words in another physical location or in a more secure place. If users make such a record themselves, it may lead to other problems.

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