Amid Exploit Investigation MyAlgo Warns Users To Withdraw Funds

• MyAlgo tweeted the warning saying that it still didn’t know what caused the wallet intrusions.
• Socially engineered phishing attempts were the highest likely cause.

MyAlgo, a supplier of Algorand network wallets, has issued a warning to its customers to withdraw cash from any wallets established with a seed phrase because of an existing exploit that has seen approximately $9.2 million worth of assets stolen.

On February 27, MyAlgo tweeted the warning, saying that it still didn’t know what caused the latest wallet intrusions and that everyone should take cautious steps to secure their money. A targeted assault carried out on a set of high-profile MyAlgo accounts was apparently carried out during the last week, the team tweeted earlier on February 27.

Socially Engineered Phishing Attempts

ZachXBT, a self-proclaimed “on-chain sleuth,” detailed the theft of approximately $9.2 million and the freezing of almost $1.5 million in cryptocurrency by the exchange ChangeNOW in a tweet on February 27.

His last words were that the vulnerability is not the product of an inherent fault with the Algorand protocol or even its software development kit. On February 27th, a group of developers working on the Algorand project, known as D13.co, issued a report that patched up a number of security holes in the system.

Based on the information gathered, the research concluded that socially engineered phishing attempts were the highest likely cause of the exposed seed phrases, followed by the “targeted exfiltration of unencrypted private keys,” for the impacted individuals. MyAlgo promised to keep cooperating with law enforcement and undertake a “thorough investigation” to find out what caused the assault.

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