Crypto exchange Algodex and wallet provider MyAlgo have experienced multiple security breaches in recent weeks. Today, MyAlgo has issued Another warning states that users will have to withdraw funds because new security breaches have not been addressed.
Through a tweet, Algodex revealed that a malicious actor had hacked one of the company’s wallets just two days ago. According to the crypto exchange Algodex, this “seems to be similar to what is happening in the Algorand ecosystem today.”
Prior to the attack, crypto exchanges had taken precautions, including moving stablecoin volumes and Algodex (ALGX) native tokens to secure platforms. The leaked wallet is tied to Algodex’s liquidity rewards program, providing extra liquidity for ALGX tokens.
Algodex states:
This resulted in malicious actors being able to remove Algo and ALGX from the pool Tinyman created to provide additional liquidity for ALGX tokens.
Algodex also stated that it has received $25,000 in LGX tokens for certain liquidity rewards. The exchange later stated that this loss must be paid in full.
It is said that the total loss from this attack is almost $55,000. After stating, the exchange clarified that the liquidity of Algodex and ALGX was not affected in any way.
MyAlgo Issues Several Warnings
Wallet service providers have issued numerous warnings following the February 19-21 security breach; This attack has caused losses close to $9.2 million. MyAlgo tweeted week later, stating that this attack was aimed mainly at a group of high-profile MyAlgo accounts.
The exchange has not been able to identify the cause of the attack. John Wood, chief technology officer in the network committee at network governance body Algorand Foundation, confirmed that the exploit affected 25 accounts.
The Algorand Foundation blog post reads:
We would like to provide clarity regarding the unauthorized and ongoing access and movement of assets of MyAlgo Wallet users. MyAlgo is a third-party wallet provider, not directly affiliated with Algorand Inc or the Algorand Foundation. The Algorand protocol has not been compromised.
It appears that this is an ongoing attack and all MyAlgo Wallet users should immediately transfer their assets from their wallets that have interacted with the MyAlgo platform. Users must withdraw funds to, or rekey to, a newly created account outside of MyAlgo, or to a hardware wallet.
The wallet provider for the Algorand network issued a new warning to users. MyAlgo has encouraged everyone to take precautionary measures to protect their assets by remittance of funds or rescheduling their accounts.
Wood said:
This is not the result of an underlying problem with the Algorand protocol or the SDK.
Featured Images From UnSplash, Graphics From TradingView.com