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.
All users of MyAlgo must withdraw funds or re-deposit funds into new accounts as soon as possible! ⚠️🚨 Don’t wait! !
Create a new account:https://t.co/FhRCndPvfShttps://t.co/mj57KBg8Ml
Account Reactivation Instructions:
— MyAlgo (@myalgo_) March 6, 2023
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.
Earlier on March 5, 2023, one of our company’s wallets was infiltrated by malicious actors.The attack appears to be similar to what is currently happening #Algorand ecosystem.
— Algodex (@AlgodexOfficial) March 6, 2023
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Additionally, over $30,000 worth of ALGX and ALGO tokens have been withdrawn from Tinyman DEX.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.”
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According to USA Today