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.