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Users of MyAlgo are exhorted to withdraw as the cause of a $9.2M breach remains unknown

The chief technology officer for the Algorand Foundation has stated that the vulnerability is not the product of a fundamental problem with the Algorand protocol or Software.

In light of the current breach that has seen an estimated $9.2 million worth of funds taken, MyAlgo, an Algorand network wallet service, has advised its users to remove funds from any accounts made with a seed phrase.

Although MyAlgo did not comment on the anticipated financial losses caused by the assault, blockchain sleuth ZachXBT has reported that more than $9.2 million was likely taken between February 19 and February 21, based on information gathered by blockchain intelligence platform TRM Labs. After confirming an attack occurred over a week ago, the server reported no further activity.

On February 27th, MyAlgo tweeted the warning, explaining that it still didn’t know what caused the recent wallet breaches but that everyone should take cautious steps to safeguard their funds.

In an earlier statement on February 27, the team issued a caution about a targeted attack carried out against a collection of high-profile MyAlgo accounts. This attack appears to have been carried out over the course of the previous week. According to MyAlgo, users who had mnemonic wallets where the key was placed in an internet browser were especially vulnerable to the vulnerability because of the location of the key. The generation of a private key in a mnemonic wallet generally involves the use of between 12 and 24 syllables.

On February 27, John Wood, the chief technology officer at the Algorand Foundation, went to Twitter to announce that approximately 25 accounts had been compromised as a result of the vulnerability. He went on to say that the vulnerability is not the product of a fundamental problem with the Algorand protocol or the software development tools associated with it.

On February 27th, a group of developers working on the Algorand project, called D13.co, published a report that patched up numerous security holes in the system, including those in software like ransomware and operating systems. According to the study, socially designed phishing attacks were the “most likely” cause of the exposed seed phrases, followed by the targeted exfiltration of decrypted private keys, for the impacted users.

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