Algorand wallet provider asks users to withdraw funds following exploit

ambcrypto.com:

MyAlgo, a wallet provider for the Algorand Network, has warned its users to withdraw their funds amid an exploit that saw nearly $9.2 million stolen. The warning was extended to users with funds in Mnemonic wallets that were stored in MyAlgo. 

According to a 27 February tweet by MyAlgo, wallets that were created with a seed phrase are the ones to watch out for. MyAlgo stated that the attacks took place over a week ago, with no other developments since. The provider stated:

“As we still don’t know the root cause of recent hacks, we encourage everyone to take precautionary measures to protect their assets. Thank you for your understanding.”

— MyAlgo (@myalgo_) February 27, 2023

MyAlgo has urged users with mnemonic wallets to switch to a ledger wallet or open a new account. Earlier this week, the MyAlgo team informed its community on Twitter about the attack that targeted high-profile MyAlgo accounts. All the affected users had significant funds lying in their accounts with the key stored in the browser.

The root cause of the attack remained unidentified at press time. However, the wallet provider said that it was working with authorities to determine the same. 

On 28 February, popular on-chain sleuth ZachXBT revealed that the attacker had made away with 19.5 million ALGO and 3.5 million USD Coin [USDC] in the exploit that took place between 19 – 22 February.