Following the theft of somewhere between $1-2 million in Tether and Algo tokens from the hot wallet of venture capital firm Algo Capital, the chief technology officer (CTO) who administered the wallet has fallen on his sword.
Resigning his position as CTO, Pablo Yabo took full responsibility for the security breach – his mobile phone was compromised by hackers – and issued a statement explaining that the thieves were extremely swift, accessing the file within minutes and then distributing the crypto funds into a number of accounts across different exchanges.
Investors Not Hit
Algo Capital, while investing heavily in Algo tokens issued by Algorand, it is not related or affiliated with the blockchain company.
Algo Capital issued a statement over Twitter that said more than 99% of its Algo tokens are held in a Coinbase cold storage wallet and that they were safe. It said it was working with “top” security experts to address the issue. It added:
We want to let you know that none of our investors have been negatively impacted since we – as a General Partners – took full responsibility and are covering 100% of the loss.
1/ We will publish a formal statement soon regarding this incident. In the meantime we want to share the statement we had given to the Coindesk: https://t.co/InnG4p96dQ pic.twitter.com/8PEXCVqNWm
— Algo Capital (@Algo_Capital) October 6, 2019
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