{"id":306158,"date":"2023-03-07T10:10:39","date_gmt":"2023-03-07T10:10:39","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=306158"},"modified":"2023-07-24T18:21:07","modified_gmt":"2023-07-24T17:21:07","slug":"algorand-blasted-over-inaction-on-ongoing-wallet-drain-hack","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/algorand-blasted-over-inaction-on-ongoing-wallet-drain-hack\/","title":{"rendered":"Algorand blasted over inaction on ongoing wallet drain hack"},"content":{"rendered":"<p>ZachXBT blasted Algorand's failure to &#8220;acknowledge&#8221; an ongoing wallet drain hack.<\/p>\n<p>The self-described &#8220;on-chain sleuth&#8221; <a href=\"https:\/\/twitter.com\/zachxbt\/status\/1632813771797286917\">said<\/a> the Algrorand users had lost millions of dollars in the attack. Yet the project is continuing to drag its feet in helping those affected.<\/p>\n<blockquote><p><span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">&#8220;How about you clowns actually acknowledge the on-going attack stealing millions from community members and assist them.<\/span>&#8220;<\/p><\/blockquote>\n<h2>Mysterious wallet drain<\/h2>\n<p>On Feb. 27, wallet providers <a href=\"https:\/\/twitter.com\/myalgo_\/status\/1630185695791706120\">MyAlgo<\/a> posted a critical advisory recommending all users withdraw funds <span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">from Mnemonic wallets<\/span> stored in MyAlgo.<\/p>\n<p>The post acknowledged &#8220;recent hacks&#8221; and stated the attack's root cause is still unknown.<\/p>\n<blockquote><p>&#8220;<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">The attacks happened over one week ago, and no other movements have taken place since then.<\/span>&#8220;<\/p><\/blockquote>\n<p>Digging into the matter, <a href=\"https:\/\/twitter.com\/zachxbt\/status\/1630375691886686208\">ZachXBT<\/a> suspected hackers had taken over $9.2 million, comprised chiefly of 19.5 million ALGO and 3.5 million USDC, between Feb. 19 &#8211; 21.<\/p>\n<p>More than a week after MyAlgo's initial warning, <a href=\"https:\/\/twitter.com\/zachxbt\/status\/1632813771797286917\">ZachXBT<\/a> condemned Algorand for its inaction in closing off the attacker's off-ramping avenues. He added that the community neglect displayed is unacceptable.<\/p>\n<blockquote><p><span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">&#8220;Why is it just people from the community and myself sharing the attackers addresses with exchanges meanwhile just silence from your embarrassment of an org.<\/span>&#8220;<\/p><\/blockquote>\n<p>Collating tweets from frustrated Algorand holders, <a href=\"https:\/\/twitter.com\/zachxbt\/status\/1632872478308552704\">ZachXBT<\/a> confirmed that wallet drains are still happening as of March 7.<\/p>\n<h2>Algorand Foundation responds<\/h2>\n<p>On March 6, the <a href=\"https:\/\/twitter.com\/AlgoFoundation\/status\/1632867775596175362\">Algorand Foundation<\/a> admitted the problem by summarizing the situation. It said that investigations showed no protocol or software development kit vulnerabilities.<\/p>\n<blockquote><p>&#8220;<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">The Algorand protocol is robust and secure, and has not been compromised.<\/span>&#8220;<\/p><\/blockquote>\n<p>Furthermore, the foundation has been in contact with MyAlgo and confirmed the wallet provider had not identified any vulnerabilities. But inquiries are still ongoing.<\/p>\n<p>The Algorand Foundation distanced itself from MyAlgo, saying the wallet provider is a third party and has no direct association with the protocol or foundation.<\/p>\n<p>Reiterating advice to withdraw funds from MyAlgo, the foundation added users may also &#8220;re-key&#8221; to another wallet provider or hardware wallet, with the PeraAlgo and Defly wallets recommended.<\/p>\n<p>Algorand CTO <a href=\"https:\/\/twitter.com\/JohnAlanWoods\/status\/1632799303512014850\">John Woods<\/a> posted a video on wallet security that focused on how crypto wallets work from a technical viewpoint. He advised users to store funds on a hardware wallet due to its superior protection over other wallet types.<\/p>\n<blockquote><p>&#8220;the key never leaves the hardware wallet; the hardware wallet doesn't have the physical capability to give the key out via the USB interface.&#8221;<\/p><\/blockquote>\n<p>Woods said he and Algorand care when people are impacted by fraud and theft. He asked for patience while MyAlgo conducted its forensic analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ZachXBT blasted Algorand&#8217;s failure to &#8220;acknowledge&#8221; an ongoing wallet drain hack. The self-described &#8220;on-chain sleuth&#8221; said the Algrorand users had lost millions of dollars in the attack. Yet the project is continuing to drag its feet in helping those affected. &#8220;How about you clowns actually acknowledge the on-going attack stealing millions from community members and [&hellip;]<\/p>\n","protected":false},"author":460,"featured_media":336937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16041,77644,60206],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Algorand blasted over inaction on ongoing wallet drain hack<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/algorand-blasted-over-inaction-on-ongoing-wallet-drain-hack\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Algorand blasted over inaction on ongoing wallet drain hack\" \/>\n<meta property=\"og:description\" content=\"ZachXBT blasted Algorand&#039;s failure to &#8220;acknowledge&#8221; an ongoing wallet drain hack. The self-described &#8220;on-chain sleuth&#8221; said the Algrorand users had lost millions of dollars in the attack. Yet the project is continuing to drag its feet in helping those affected. &#8220;How about you clowns actually acknowledge the on-going attack stealing millions from community members and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/algorand-blasted-over-inaction-on-ongoing-wallet-drain-hack\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-07T10:10:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-24T17:21:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/06\/algorand.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Samuel Wan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta 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