MyAlgo, a provider of cryptocurrency wallets, recently notified its customers of a hack that resulted in the theft of funds worth an estimated $9.2 million. The specific reason for the attack remains unknown. The company urges users to withdraw their funds from wallets created with a seed phrase. Zoom in on all the details and the measures to be taken.
The details of the attack and the consequences
The question of security arises, whether for ordinals or just for the common use of cryptocurrencies. Today, it was MyAlgo who warned users through Twitter to withdraw all funds from Mnemonic wallets stored in their services.
As a reminder, a mnemonic wallet usually uses between 12 and 24 words to generate a private key. According to John Wood, technical director of the Algorand Foundation, around 25 accounts were affected by the exploit.
This attack allegedly led to the theft of funds worth $9.2 million. Until then, the cause remains unknown.
According to ZachXBT, a detective on the channel, the theft reportedly involved more than 19.5 million ALGOs and 3.5 million USDC. ChangeNOW, a cryptocurrency exchange, was able to freeze approximately $1.5 million in funds linked to the attack. However, the fate of other stolen funds remains unclear.
The possible causes of the attack and the security measures to take
MyAlgo said the company will continue to work with authorities. It intends to conduct a thorough investigation to determine the root cause of the attack.
According to developer collective D13.co, there are several possible exploit vectors, such as malware or operating system vulnerabilities. Nevertheless, the report ruled out these possibilities. It reveals that the seed phrases of affected users have been compromised by phishing attacks or that MyAlgo’s website has been compromised, leading to “targeted exfiltration of unencrypted private keys”.
Therefore, users must take precautionary measures to safeguard their assets. The first step is to withdraw all funds from MyAlgo cryptocurrency wallets and transfer them to safer wallets. They should also be wary of suspicious emails or websites.
Despite the resistance of victims to the attacks, this cyber attack against MyAlgo highlights the dangers faced by cryptocurrency holders. The investigation continues to determine the reason for this attack. But, with the reputation of exchange platforms ruined by the bankruptcy of Ftx, the hard Wallet seems to be the best alternative for the moment.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
