Algo Capital, an investment firm focused on the Algorand blockchain, lost a few million dollars in USDT and ALGO tokens after its chief technology officer’s phone was breached, CoinDesk has learned.
According to a source familiar with the matter, Algo Capital reported to its limited partners Friday that Pablo Yabo, its CTO, had his mobile compromised which allowed attackers to seize control of an Algo hot wallet administered by Yabo. As a result of the breach, roughly $1 million to $2 million in the cryptocurrencies were taken, according to an email from CEO David Garcia seen by CoinDesk.
“Yes, there was a security breach,” CEO David Garcia told CoinDesk in an email. “We communicated to all the Algo Capital VC Fund Limited Partner’s and updated them about the incident.”
The network itself remains unscathed. The Algorand team is aware of the breach suffered by the investment firm, the source said.
Algo Capital has raised $200 million for its Algo VC Fund, with the cash intended to support projects in the Algorand economy. Algo Capital founder and managing partner Arul Murugan said in an August 2019 statement that:
“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.” Read More...