Algorand Blockchain Firm Loses Crypto Funds After Phone Hack

Algo Capital, the Algorand blockchain investment firm lost a few million dollars in USDT and their native ALGO tokens after the phone of the chief technology officer were hacked as we are reading further in the latest blockchain news today.

According to the source who was familiar with the matter, the Algorand blockchain firm, Algo Capital, reported to its limited partners on Friday that the CTO Pablo Yabo had his mobile phone compromised which allowed the attackers to seize control over his Algo hot wallet. As a result of the breach, more than $1 million or $2 million in cryptocurrency was taken according to an email from the CEO David Garcia:

 “Yes, there was a security breach. We communicated to all the Algo Capital VC Fund Limited Partner’s and updated them about the incident.”

The network luckily remained unscathed and the Algorand team is now aware of the breach suffered by the investment company. Algo Capital raised more than $200 million for its ALGO VC fund and they intended to use the cash to support projects in the Algorand economy. The company founder and managing partner Arul Murugan stated in a statement:

 “Our investment approach specifically targets companies that are creating the next great blockchain applications and infrastructure solutions, and as a result, helping to speed blockchain adoption and bring millions of new users into the Algorand network.”

The investment company is a separate entity from the Algorand Foundation and Algorand LLC which are overseeing the blockchain’s actual development. Pablo Yabo resigned his position according to the email which was sent to the partners of the company. The further security measures have already been taken by the company and the majority of the funds that were held in cold wallets were not compromised. The company is taking full responsibility for the loss and they stated that they are engaging with multiple organizations and security service providers to collaborate and solve the issue which has become very common in the industry. As per the reports in the coming cryptocurrency news today, the Algorand blockchain was first created by the MIT professor Silvio Micali in 2017 as a solution for the scaling issued that some of the other blockchains face.