Root Cause Of MyAlgo Attack Identified, No Flaws Were Discovered

Nonetheless, the assault is no longer active, no application or codebase vulnerabilities were exploited, no browser capabilities (such as autofill) were misused, no seed encryption flaws were discovered, and open-source MyAlgo components were unaffected.

? A high-impact hack recently targeted MyAlgo @myalgo_, a web-based #Algorand wallet, affecting thousands of users. Our team at Coinspect has voluntarily collaborated with the wallet provider to identify the root cause. We’re proud to say we were able to uncover it. 1/5

— Coinspect Security (@coinspect) March 18, 2023

Moreover, the attacker decrypted the seed because they had the password, not due to an encryption flaw. It is strongly advised that impacted users change their wallet passwords immediately and do not reuse them. At the same time, users should be wary of phishing frauds.

MyAlgo sent a notice in February that all users should withdraw any monies saved in the mnemonic wallet. MyAlgo advises everyone to take action to safeguard their valuables since the main cause of the intrusion is unclear.

MyAlgo users were able to withdraw their assets again at the beginning of this month after the February security breach, which didn’t seem to have been rectified.

MyAlgo notified the foundation that they had discovered no security issues, but they were continuing to evaluate the platform and are awaiting data from CDN and VPS providers, among others.

Algodex said in a March 6 report that a hostile actor penetrated a company wallet. The infiltrated wallet, on the other hand, was linked to Algodex’s liquidity incentives program and was in charge of supplying additional liquidity to the ALGX token.

The exchange said that $25,000 in. ALGX tokens designated for liquidity awards were stolen but that it will be replaced in full.

It went on to say that the overall damage from the heist was less than $55,000, although Algodex users and ALGX liquidity were unaffected.

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