Algorand’s MyAlgo Wallet Sends Emergency Alerts to Users — Here’s Why

Earlier today, the Twitter account of the blockchain security company “Peckshield Alert” posted a message warn Informing the crypto community that Algodex, one of the institutional wallets for the decentralized limit order exchange on Algorand, has been hacked.

Faced with this incident, Algorand wallet provider – MyAlgo issued a dire warning to users, who must withdraw or transfer funds to new accounts as soon as possible.

The official Algodex Twitter account recounted what happened, saying that early on March 5, 2023, one of their institutional wallets was compromised, which seems similar to what is currently happening in the Algorand ecosystem.

The compromised wallet was linked to Algodex users’ liquidity rewards program and provided liquidity to “Tinyman,” a decentralized exchange protocol on the Algorand blockchain.

Algodex stated that the current loss is not too large, but about $25,000 worth of ALGX tokens were stolen, and these tokens were specially used to provide liquidity rewards for Algodex users. They promised full compensation.

Additionally, over $30,000 worth of ALGX and ALGO tokens have been withdrawn from Tinyman DEX. Therefore, the total loss from the theft was less than $55,000 and had no impact on Algodex, any Algodex users, or ALGX’s liquidity on Algodex.

CEO Algorand comments on theft

In a Twitter thread, Algorand Foundation CEO Staci Warden spoke about the protocol’s moves in the wake of recent thefts in the Algorand ecosystem. She reassured users that this was not an agreement, adding:

“It also wasn’t phishing as we initially thought.”

“Everyone, or nearly everyone, is affected. This person is currently moving the balance in the MyAlgo wallet from the highest to the lowest. We are trying to help RAND Labs find the vulnerability, but honestly, haven’t found it yet.”

“I also lost money in this incident, but it’s hard for me to imagine people’s pain. I’m really sorry for what happened in our community.”

  • Here’s why you shouldn’t trust this algorithm and be bullish (ALGO)
  • Algorand’s MyAlgo Wallet Hacked Advising Users to Withdraw All Funds, ALGO Price Drops 12% This Week

board take

According to USA Today

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