MyAlgo Warns Users on Mnemonic Wallets Following Attack
The leading Algorand wallet and DApp gateway, MyAlgo, has reiterated its call on users to take measures that will safeguard their digital assets. In a follow-up tweet, MyAlgo emphasized that users with mnemonic wallets in MyAlgo should move funds or rekey to accounts held in Ledger or other wallet providers.
🚨This warning stands! Users with mnemonic wallets in MyAlgo should move funds or rekey to accounts held in Ledger or other wallet providers.
The investigation is still ongoing https://t.co/SB1iVF35W7
— MyAlgo (@myalgo_) March 5, 2023
In an earlier post, MyAlgo released an initial notice advising users to withdraw any funds from mnemonic wallets stored on the platform. The warning resulted from an ongoing investigation into recent hacks that the platform experienced. According to MyAlgo, the notice was for users to take precautionary measures while the team continued with the probe to ascertain the root cause of the hacks.
In the original notice, MyAlgo advised users to be careful while transferring their funds. The wallet provider called on users not to rush things but to ensure they approach the transfer or rekeying process safely. MyAlgo encouraged those who encountered difficulties to ask questions, as the team members were available to offer support.
MyAlgo’s initial warning was based on an alert of a targeted attack against a group of high-profile accounts. A self-acclaimed on-chain sleuth with the Twitter handle “ZachXBT” quoted the stolen amount to be up to $9.2 million. The sleuth noted that the ChangeNow exchange shared that they have frozen $1.5 million of the stolen funds.
I haven’t seen many posts about this on CT yet but it’s suspected over $9.2m (19.5M ALGO, 3.5m USDC, etc) has been stolen on Algorand as a result of this attack from Feb 19th to 21st.
ChangeNow shared they were able to freeze $1.5m. https://t.co/BPCXTUD57n pic.twitter.com/A3t7Ss0e83
— ZachXBT (@zachxbt) February 28, 2023
Members of the MyAlgo team responded to users who encountered problems while attempting to transfer their funds from the mnemonic wallets. In one instance, a user who complained of inability to transfer all ASA assets to the ledger wallet received support, including a video tutorial on how to go about it.
Full details of the hack are yet to be released. However, MyAlgo notified users that an investigation is still ongoing to ascertain the root cause of the hack.