MyAlgo users urged to withdraw, as cause of $9.2M hack remains unknown

Mar 20, 2023 | wjb news

MyAlgo, a wallet service provider for the Algo Internet, has warned customers that 9.2 million dollars worth of assets may have been stolen from wallets built by all kinds of seed statements in a constant attack.

MyAlgo posted the proposal on Twitter on Feb. 27, adding that it still did not know the main reason why the wallet was recently attacked by cyber hackers and supported "everyone taking precautions to protect their property."

Earlier on February 27, the team posted a warning on Twitter that it was a "purposeful attack [.]" The survey and analysis of a group of high-profile MyAlgo accounts seems to have been conducted in the past week.

ZachXBT briefly said in a tweet on Feb. 27 that the vulnerability was suspected to have stolen more than $9.2 million, and that logging into password trading center ChangeNoW could freeze assets worth about $1.5 million.

According to MyAlgo, it is consumers who have mnemonic wallets with keys stored in Internet browsers that are vulnerable. Mnemonic wallets usually use 12 to 24 words to form a public key.

Robert Field, technical director of the Al Goran Foundation, a network governance organization, said on Twitter that about 25 accounts had been affected by the attack.

He added that the loophole "is not caused by the potential problems of optimizing algorithm protocols and their software development kits"., a team of developers working on algorithms, released a report on February 27th that circumvented a variety of possible media, such as malicious programs or vulnerabilities in computer operating systems.

The report makes it clear that the most likely scenario is that affected customer seed statements are exploited according to social engineering phishing attacks, or MyAlgo's website is compromised, resulting in "targeted disclosure of unencrypted public keys".

MyAlgo said it would continue to work with the government and conduct "full research to identify the main cause of the attack".