MyAlgo, a renowned blockchain wallet provider, announced today that it would unveil early results on Monday about the continuing security issue on its wallet service. MyAlgo highlighted that its priority was preserving current law enforcement investigations, despite the community’s hunger for information about the situation.
MyAlgo’s asset recovery quest
The event, which began in February 2023 and involved the theft of users’ funds, was first reported. To assist in tracking and freezing stolen funds, MyAlgo has collaborated extensively with exchanges, blockchain analytics businesses, and law enforcement agencies worldwide.
🚨 Update:
This Monday, we'll unveil preliminary findings.We understand the community's eagerness for info, but please remember that we must prioritize safeguarding ongoing law enforcement investigations.
— MyAlgo (@myalgo_) March 18, 2023
MyAlgo said that despite having a devoted but small staff and limited resources, it is still committed to addressing the matter and bringing those guilty to justice. During this trying period, the MyAlgo team wanted to thank the community for their support and patience.
ZachXBT, a blockchain investigator, uncovered that Algorand lost over $9 million worth of Algorand tokens and USDC in a cyberattack from February 19 to 21. While the attack was ongoing, ChangeNow, a centralized exchange, was able to freeze $1.5 million of the stolen funds. In light of this incident, MyAlgo warned all users to withdraw any remaining assets from Mnemonic wallets, as they were deemed to be at risk.
Hack-free Algorand protocol: CTO confirms
John Wood, the Chief Technical Officer (CTO) of Algo Foundation, has highlighted that based on the findings of their study, the attack was not caused by any fundamental fault with the Algorand protocol or its software development kit (SDK).
1/n Update on the exploit impacting ~25 accounts: from our investigation, this is not the result of an underlying issue with the Algorand protocol or SDK.
— John Woods (@JohnAlanWoods) February 27, 2023
Wood has promised that after the various investigation procedures have been completed, he will upload a video explaining how the vulnerability was exploited and advising consumers on how they may best protect themselves.