As Cointelegraph recently reported, Algo Capital CTO Pablo Yabo’s cellphone was compromised by hackers, leading to the theft of roughly $1–2 million in Tether (USDT) and Algorand (ALGO) tokens from an Algo hot wallet.
The now-former chief technical officer (CTO) of Algo Capital, the investment arm of blockchain firm Algorand, has published a statement in the wake of a major security breach of an Algo hot wallet under his personal management.
Securing funds “in a versatile manner” remains difficult
In his statement, Yabo wrote that the incident had provoked considerable reflection on his part, adding:
“The state of the ecosystem and the difficulties to secure and operate funds while doing it in a versatile manner. It is still very complicated to secure funds for institutions that need them readily available. Until this interface problem is not solved, the global adoption of this technology by businesses will not happen.”
Yabo noted that the hackers’ operation was extremely swift, with them reportedly accessing a sensitive file within minutes, transferring the crypto funds into numerous accounts and then dispersing the ill-gotten coins to various exchanges.
Saying he takes full responsibility for the breach, Yabo has revealed that he will be personally covering most of the stolen funds, with the rest to be covered by Algo Capital General Partners.
ALGO down 14% on the week
Having resigned as CTO, Yabo said that he would focus his time on developing secure frameworks at Rand Labs, a team specializing in technology development for the Algorand ecosystem, including wallets, multisig accounts and block explorer tools.
This August, Algo Capital has raised $200 million for its venture capital fund which will be focused on businesses that build infrastructure for the Algorand blockchain. Based on Byzantine Agreement message-passing protocol, the network is an open source public ledger and cryptocurrency payment system.
At press time, Algorand (ALGO) is ranked 18th largest cryptocurrency by its market capitalization and trading stably on the day. The token is down 14.1% on the week, according to Coin360 data.
$6.4M Worth of FSN Tokens Stolen From Fusion Network’s Swap Wallet
Fusion Network’s token swap wallet was compromised. Roughly a third of FSN tokens was stolen as a result.
Fusion Foundation announced in a Medium post published on Sept. 29 that its swap wallet was compromised, which resulted in the theft of 10 million native FSN and 3.5 million Ethereum (ETH)-based ERC-20 FSN tokens. The total worth of stolen FSN tokens was estimated at around $6.4 million at that time.
The Foundation’s investigation has not revealed any other affected wallets so far. The alleged cybercriminal reportedly started to launder the coins already:
“After the currency was stolen, abnormal wash-trading behaviour occurred, and some of the stolen tokens were sold across exchanges, in particular Bitmax and Hotbit.”
Private key stolen
The attacker reportedly obtained access to the wallet by stealing the private key associated with it. The author of the post claims that “the Fusion Protocol and technology itself has been and remains secure.”
In an attempt to prevent the laundering of the funds in question, deposits and withdrawals of FSN tokens have been reportedly suspended on cryptocurrency exchanges such as Huobi, OKEx, Bitmax, Citex and Hotbit. All the funds remaining in the token swap wallet were moved to a cold wallet, abnormal transactions are being tracked. Lastly, the Foundation is also working on some unspecified technological approaches to recover the funds.
As of press time, FSN is trading at around $0.174 – over 66% lower than the one it traded at yesterday, according to Coin360 data.
As Cointelegraph reported yesterday, Amerian Internet infrastructure firm Juniper Networks found a new spyware that uses Telegram app to replace crypto addresses with its own.