• MyAlgo, an Algorand-based wallet provider, has warned users to withdraw assets from all wallets created with a mnemonic phrase after an exploit led to a $10 million loss.
• The wallet provider is still investigating the root cause of the attack and advised users to transfer funds from seed phrase wallets stored in MyAlgo as precautionary measure.
• The affected accounts had significant amounts of assets in their accounts and were using mnemonic hot wallets with private keys stored in the browser.
MyAlgo Warns Users to Withdraw Funds After Exploit
MyAlgo, an Algorand-based wallet provider, has cautioned its users to withdraw any funds from Mnemonic wallets stored in MyAlgo after an exploit led to a $10 million loss. The company is yet to identify the root cause of the exploit which targeted a group of high-profile MyAlgo accounts that had significant amounts of assets in their accounts.
Exploit Affected Mnemonic Hot Wallets
The wallets used by those affected were mnemonic hot wallets wherein private keys were stored in the browser. However, hardware wallet users were not affected by this incident according to MyAlgo’s investigations. The team is currently working with authorities and affected parties while they investigate how this exploit occurred.
Precautionary Measures Advised
To ensure user safety, MyAlgo strongly advised all users to transfer any funds from seed phrase wallets stored on their platform as it still does not know the root cause for these hacks. They urged people take precautionary measures for asset protection until the matter is resolved completely and thoroughly investigated by their team and relevant authorities.
$9 Million Stolen In Attack
In total, over $9 million worth of assets was stolen during this attack on February 26th, 2021 according to updated reports from MyAlgo. This incident highlights how vulnerable digital currency can be when held online or on less secure platforms compared to hardware or cold storage solutions that are more secure long-term investments for serious crypto holders.
As such incidents continue occurring in spite of best security practices implemented by companies like MyAlGo, it’s important for investors and traders alike take extra precautions when dealing with digital currencies and always store them securely offline when possible
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