Algorand blockchain-based Wallet MyAlgo Suffers $9.6M Exploit
Algorand chief technology officer John Woods conveyed an announcement confirming that 25 wallets suffered the exploit. The revelation prompted MyAlgo to advise its users’ community to consider withdrawing the funds following the exploit.
Exploit Targeted Native token and USDC Stablecoin
The native wallet established upon the Algorand blockchain protocol confessed to suffering the exploit last week. Subsequent scrutiny of outflow transactions executed on the MyAlgo wallet by ZachXBT unearthed that 19.5 million ALGO and 3.5 million USDC estimated at $9.6 million, were stolen.
The blockchain sleuth indicated that a centralized exchange (CEX) ChangeNow traced the funds and froze $1.5 million of the proceeds.
All Mnemonic Wallets’ Users to Withdraw Funds
The update conveyed by MyAlgo via the official Twitter hurdle directed all users to consider withdrawing funds, particularly from Mnemonic wallets stored within MyAlgo. Algorand tech executive Woods confessed that 25 wallets were adversely affected during the exploit.
The tech executive was noncommittal on the underlying source of the exploit. However, Woods ruled out any underlying issue linked with the Algorand protocol.
Woods reassured the Algorand community by releasing an illustrative video following the conclusion of the hack investigation. MyAlgo tweet echoed Woods’ sentiments by declaring that the source of the exploit was unknown.
ALGO Market Outlook
Meanwhile, news of the exploit has eroded Algorand token (ALGO) price slip by 4% to $0.2494 in the past 24 hours, as illustrated by CoinMarketCap data. ALGO had tested highs of $0.2613 before retreating to a low of $0.2477 in the past day.
The total market capitalization shrunk by 4% to $1.776 billion. Its fully diluted market capitalization replicated the 4% decline to realize $2.496 billion, as per CoinMarketCap. The token’s daily trading volume increased by 10% to $50.336 million.
A scrutiny of the ALGO performance shows that its value has declined by 68.6% in the past year. Beyond the exploit days, ALGO registered a 7-day decline of 11.8%.
Further, ALGO is exchanging hands at 137.07% higher than its all-time low of $0.105336, realized on March 13, 2020. The current price level drifted miles away from the all-time high of $3.56 accomplished on June 20 2019, with CoinGecko data showing it is 92.99% down.
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