Algorand lost part of its assets due to security breach

Posted 07 October, 2019

Algo Capital, the investment division of the US-based blockchain startup Algorand lost around $1-2 million in Algorand (ALGO) tokens and Tether (USDT) stablecoins. The company management informed investors about lost access to a hot wallet. The remaining funds were stored in a cold wallet.

“Yes, there was a security breach,” - stated CEO David Garcia. 

The control over hot wallet was a duty of CTO Pablo Yabo. Yabo's mobile was hacked and thus the criminals got access to the funds. After the incident, Yabo has resigned. Besides, he is ready to compensate for most of the losses caused by the hack as it was  announced in his blog.

"The operation was very swift, within minutes the hackers had been able to access a sensitive file and transferred all stolen crypto funds." - he wrote.

According to the released assessment the project has lost some $1-2 million due to the attack.

Note that the Algorand startup turned out to be the worst project in terms of performance at Binance in July. After collecting $60 million in June during the first public sale of its tokens, the company eventually lost 61.8% of the value.

Despite such failures, Algo Capital somehow received $200 million for its venture capital fund, which is 2-fold above the project’s primary goal.

Previous story

07 October, 2019 13:27

← Tokens to become legal for financial activities in Lichtenstein

Lichtenstein approved the law on blockchain striving to support the financial market and promote the development of new technologies at the end of last week. In particular, the government intends to boost tokenomics, which is based on crypto tokens.

Tokens to become legal for financial activities in Lichtenstein

Next story

07 October, 2019 11:06

SEC reminds: bitcoin is not security →

The US Securities and Exchange Commission stands firm believing that the major cryptocurrency should not be considered as securities. The US regulator has unveiled a response to the application filed by Cipher Technologies Bitcoin Fund this May.

SEC reminds: bitcoin is not security
Write a comment
 
Prove you’re not a bot + 5 = 11