Algorand Wallets Hacked Again

blockchain.news:

Algorand-based wallets have been hit by security breaches in recent weeks, with MyAlgo and Algodex both experiencing hacks. MyAlgo urged users to withdraw their assets or rekey their funds after a February security breach that resulted in losses of around $9.2 million. In the past week, a targeted attack was carried out against a group of high-profile MyAlgo accounts. The cause of the breach is unknown, and the wallet provider has encouraged users to take precautionary measures to protect their assets. Meanwhile, Algodex revealed that a malicious actor infiltrated a company wallet on March 5, similar to what is happening in the Algorand ecosystem. Algodex moved the bulk of its USD Coin (USDC) and native Algodex (ALGX) tokens to secure locations, but the infiltrated wallet was responsible for providing extra liquidity to the ALGX token. The exchange confirmed that $25,000 in ALGX tokens allocated to provide liquidity rewards were taken, but it would replace this in full. The total loss from the theft was less than $55,000, and Algodex users and the liquidity of ALGX were not affected.

The Algorand Foundation's chief technology officer, John Wood, confirmed that around 25 accounts were affected by the MyAlgo exploit, and it was not the result of an underlying issue with the Algorand protocol or software development kit (SDK). The foundation is responsible for the development and governance of the Algorand ecosystem, which aims to create a secure and decentralized platform for digital assets and applications. Algorand uses a pure proof-of-stake consensus algorithm that is designed to be energy-efficient and secure against attacks. The protocol has been adopted by a range of projects and companies in the blockchain space,