Algodex Reveals Wallet Infiltrated by ‘Malicious’ Actor, While MyAlgo Renews Warning: Download Now

Algorand-based wallet provider MyAlgo has again urged users to withdraw their funds following a security breach in February that does not appear to have been resolved.

Meanwhile, decentralized exchange Algodex revealed that a malicious actor broke into the company’s wallet on March 5 in what “looks similar to what is currently happening in the Algorand ecosystem,” it said in a post on Twitter.

On March 6 postAlgodex explained that in the early hours of the previous morning, the company’s wallet was compromised by a malicious actor.

According to Algodex, precautions were taken before the attack, including moving the majority of their USDC and treasury tokens ALGX tokens to secure locations.

However, the compromised wallet was linked to the Algodex Liquidity Rewards program and was responsible for providing additional liquidity to the ALGX token.

“This led to the malicious actor being able to remove Algo and ALGX in the Tinyman pool we created to provide additional liquidity to the ALGX token,” Algodex said.

The exchange noted that $25,000 in ALGX tokens intended to provide liquidity rewards had been taken, but said it would replace this in full.

It added that the total loss from the theft was less than $55,000, but Algodex users and ALGX liquidity were not affected.

Meanwhile, the wallet provider for the Algorand networkMyAlgo has renewed warnings to users to withdraw their assets or transfer their funds to new accounts as soon as possible.

Multiple warnings were issued late February 19th through February 21st MyAlgo security breachresulting in losses of about $9.2 million.

On 27 Feb. the MyAlgo team tweeted warning of a targeted attack carried out “against a group of high-ranking MyAlgo accounts” over the past week.

Connected: 7 DeFi Protocol Hacks in February Show $21 Million in Stolen Funds: DefiLlama

The wallet provider also said the reason for the wallet hack was unknown and encouraged “everyone to take precautions to protect their assets” by transferring funds or switching accounts.

John Wood, chief technology officer at network management body Algorand Foundation, went on Twitter the same day, saying about 25 accounts were affected by the exploit.

“This is not the result of a fundamental problem with the Algorand protocol or the SDK,” he said at the time.