Investment arm of US-based blockchain firm Algorand – Algo Capital – has been swindled $1 to $2 million worth Tether (USDT) stablecoins and Algorand (ALGO) tokens after the mobile phone of firm’s CTO Pablo Yabo was hacked.
The exploit permitted hackers to gain control over Yabo-administered Algo hot wallet.
The overall damages were disclosed in detail through an email by the company’s CEO David Garcia. In addition to confirming the security breach, the firm informed details regarding the incident to its limited partners.
Quoting anonymous source, the news report states that Algorand is cognizant of the exploit experienced by Algo Capital so far. The company has stated that it will bear the loss and compensate the entire sum in a period of 20 months.
Garcia further stated that “We are engaging with certain key organizations and security services to collaborate and address this issue which has become a common industry problem.”
Even though Algorand network was not impacted as the bulk of its funds are stored in cold wallets that were not hacked, Yabo took responsibility and stepped down from his position.
In August 2019, Algo Capital got funded to the tune of $200 million for its venture capital fund which intends to invest in endeavors assisting to create necessary framework for Algorand blockchain. On the basis of Byzantine Agreement message-conveying covenant, the network is open-source public ledger and crypto payment mechanism.
In the meantime, Algo token has lost 4.5% in the past 24 hours to trade at $0.2132. The cryptocurrency has a market capitalization of $93.08 million at the time of writing this article.
