Cryptocurrency Algorand (ALGO) whales have warned that their wallets have been drained in a hacker attack that occurred in recent days, indicating a major problem in the project.
The case upset the altcoin ecosystem, which began investigating what might have happened. The suspicions concern an action against the whales between February 19 and 21, 2023.
Moreover, a coin-linked cryptocurrency wallet asks users to withdraw their values to avoid further problems.
Algorand CTO says targeted attack caused problems
Algo and CTO John Woods, seeing a general distrust of the protocol, defended the technology it helps build.
According to him, when analyzing the case, everything indicated that the attack targeted wallets and did not reach the main protocol. Still, he urged caution for anyone approving transactions over the network.
“Guys – I agree there are too many of these hacks to be a coincidence, but it’s not a protocol issue. We are working to help individually, it seems like a targeted attack to me. Be extremely careful with your Operational Sec, double check before approving txns.
Folks – I agree there are too many of these hacks to be a coincidence, but it’s not a protocol issue. We are working to help on an individual basis, seems like a targeted attack to me. Be extra careful with your Operational Sec, double check before approving txns. https://t.co/TTLdacdgai
— John Woods (@JohnAlanWoods) February 22, 2023
The CTO’s ruling came after an initial investigation revealed that 13 million ALGO had been stolen. With no major project leaders coming forward, community members asked for answers.
Algorand cryptocurrency whales may have lost millions of tokens
The initial investigation into the hacks involves the owners of Algorand cryptocurrency addresses who have a lot of money, i.e. the whales. With the loss of millions of tokens between February 19 and 21, ALGO’s price is down 11.9% in the past seven days. In dollar terms, the losses are estimated at $7.2 million.
However, the MyAlgo wallet, one of the most important in the ecosystem, sent out a public statement last Monday (27). According to the wallet, as it is not yet clear what the reasons for the attack were, users have to move your wallet money.
“IMPORTANT: We strongly advise all users to withdraw funds from the Mnemonic wallets stored on MyAlgo. Since we still don’t know the cause of the recent hacks, we advise everyone to take precautions to protect their property. Thank you for your understanding. Don’t rush and make sure to transfer money or re-enter accounts safely. The attacks happened a week ago and there has been no movement since then. Take your time and avoid mistakes. Ask for help if you have questions.”
With the hack still under review, the community is trying to understand what caused last week’s theft and keep track of the stolen coins.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
